Fed’s Evans: Fed has capacity to wait and take stock of incoming data

Chicago Fed President Charles Evans recently crossed the wires arguing that the Fed has the capacity to wait and take stock of the incoming data.

Key quotes  

• Inflation expectations not risen as much as he expected.
• First half of 2019 important for assessing Fed policy.
• Downside risk increased by market turmoil, trade war.
• Inflation to average just above 2% over the next 3 years.
• Expects Fed funds to eventually rise to 3% – 3.25% range.