Chicago Fed dove Evans isn't concerned about inflation
Chicago Fed dove Evans isn't concerned about inflation and noted that fundamentals are really strong, with growth seen above trend and the jobless rate eying 3.5%. On CNBC, he believes that continuing to adjust policy to neutral in the 2.75-3.00% makes sense, while a little inflation overshoot won't be problematic. He said it's fair to question rate hikes, which is part of the debate, though the Fed is independent by Congressional charter and Powell is doing a good job about being accountable to the public. Evans would like to see wage growth improved, while the low jobless rate should help draw folks back into the workforce. Despite recent volatility, the ability to make it through back to positive fundamentals is important. He sees rising mortgage rates back above 5% on the 30-year fixed as a natural part of the transmission mechanism of Fed policy. This is about par for the course from the moderate dove, who will be a voter in 2019. He will be speaking again on the economy and policy from 9:30 ET.