Charles Evans is head of the Federal Reserve in Chicago

He is speaking at a function in New Zealand

  • Says he is 'less concerned' with timing of next rate move, than with pace and criteria for subsequent hikes
  • There should be 'very shallow' rate hike path
  • Path of rate increases much more important than any particular date for next 25 basis point move
  • Wants any subsequent moves to be explicitly tied to seeing progress in inflation indicators
  • Wants more confidence inflation expectations are solidly and symmetrically aligned with 2 pct objective
  • Says pace of rate hikes has to be shallow enough for unemployment rate to fall beneath its natural level
  • Policy needs to be accommodative enough to generate likelihood future inflation will exceed 2 percent
  • Says expects to see 'sound' economic growth, 2 pct growth average over next 3 years
  • He sees unemployment rate falling to 4.25 percent by end of 2019
  • Unemployment will reach natural rate by end of next year
  • Repeats thinks US in low-growth, low-rate environment for some time
  • Repeats thinks US in low-growth, low-rate environment for some time

Headlines via Reuters

-

  • Evans is a non-voter at the Federal Open Market Committee in 2016, but he's a voter in 2017
  • Nonvoters attend the meetings of the Committee, participate in the discussions, and contribute to the Committee's assessment of the economy and policy options

Evans is at the 'dovish' end of the spectrum and these comments are pretty much in line with his views of strong evidence required for a hike and subsequent hikes

While in NZ Evans got to hold a kiwi bird. But it escaped just as this photo was taken.