NAPLES, Fla. Jan 12 Aggressive fiscal and other
policies could for a time achieve President-elect Donald Trump's
goal of 4 percent growth, but it cannot be sustained without
deeper changes to the economy, Chicago Federal Reserve President
Charles Evans said on Thursday.
At this point, he said, the economy is near full employment
and the labor market is "pretty good...if you have the skills,"
Evans said at a meeting of the American Council of Life
But an aging population, weak productivity growth, and
declining labor force participation pose constraints that the
new administration will find hard to work around.
"The U.S. economy could experience a burst of 4 percent
growth for a year," Evans said while speaking on a panel. But
"it is not possible to just birth a large cohort of
Evans did not mention Trump's proposals specifically. But he
became the latest in a series of Fed policymakers to quietly
warn that this may not be the best moment to launch a major
fiscal plan or throw too much stimulus into the economy.
The new administration is taking over "at a time of arguably
full employment," Evans said. "The resource slack has been dealt
(Reporting by Howard Schneider; Editing by Paul Simao and Chizu