More from Evans: moderate risks to financial stability
More from Evans: moderate risks to financial stability are seen, but he's not overly nervous that this will be a product of holding rates too low for too long. He described a dilemma where regulatory bodies need to step up enforcement and to there job to ensure stability so that the Fed doesn't have to step into the breach again and repair the damage. As to the balance sheet, he echoed Yellen's view that after raising rates 1% from lows the Fed is close to being ready to unwind the balance sheet in gradual way in a process that will take over three years and the terminal level is yet to be determined. The pace may also be determined by the market reaction. Overall his remarks in a CNBC interview were upbeat, but consistent with his dovish reputation and concerns about inflation shortfalls. Yields remain near lows paced by the long-end, with stocks negative and the dollar index up 0.25% to 97.84.