Fed’s Evans: Inflation somewhat below target but expected to improve

Fed’s Evans on the economic outlook in Chicago

• Sees little risk of accelerating, markedly high inflation
• Global growth is picking up but sees trade uncertainty
• Job market ‘solid’ and consumer fundamentals ‘quite strong’
• Fed funds rate does not need to rise much above neutral
• Fed can hike gradually without the risk of inflation

In my opinion, if you’re not worried about inflation, you shouldn’t be hiking. The Fed is raising rates just so it has room to lower them later.

Expect more from Evans later, he’s slotted to take questions from the audience and media.