Speaking on Bloomberg
- To early to call on December hike
- Need to see substantial progress on inflation
- Economy pretty strong in the US
- Inflation disappointingly low
- Low inflation is a global environment
- Tightening may be less constructive if prices off target
- Important to get inflation up to 2% as quick as possible
- Economy has handled tightens so far
- US close to full employment
- We should be willing to push inflation above 2%
- The Fed should not fear 2.5% inflation
- Inflation pressure should mount if job market very strong
- We do not know how big the balance sheet will be once normalized
- Must be careful that there is not excess exuberence
- Financial stability risks moderate at the moment.
The focus on Evan's comments are a more dovish. He is obviously concerned about inflation (or lack thereof) and wants to see the "whites of inflation's eyes" before doing too much more tightening. He is undecided on December at the moment.
Evans is the president of the Chicago Fed and a voting member in 2017. He will not be a voting member in 2018.
US 10 year yield is down -2.5 bps now to 2.335%. The low yield reached 2.3302% so far today.
