03.06.201605:46:00UTC+00Charles Evans: Finally a Dove

Charles Evans, President of Chicago Federal Reserve, finally provided some picture of contrast from his colleagues, including Fed Chair Janet Yellen, who over the past few weeks made a strong hawkish case, raising the prospect of a rate hike in summer, probably June or July.

FED’s Rosengren, George, Bullard, Lockhart, Williams and Yellen, all made a case for sooner rate hike and in contrast to that Evans called for restrain and let inflation, the core component that excludes volatile parts such as food and fuel, firm around 2 percent. It is just about to hit 2 percent for first time in at least three years.

He said that he is encouraged but not satisfied with the current progress in core inflation, which is expected to average 1.6 percent this year.

“The downside inflation risks seem big – losing credibility on the downside would make it all that more difficult to ever reach our inflation target. The upside risks on inflation seem smaller.”

He expressed concerns over low inflation expectations.

His arguments may prove pivotal in determining to go ahead in June or July. However he is not a voting member this year.