Investing.com – Chicago Fed President Charles Evans said Monday that inflation is “well underway” to reaching the U.S. economic objectives but raised concerns over long-term inflation expectations.
Evans talked up the strong rebound in short-term inflation and suggested that shorter term prices are more likely to reach the Fed’s 2% target than longer term prices.
"Inflation is well under way toward our 2 percent target," Evans told a conference in Madrid. "I'd like to see it happen a little bit sooner than many forecast. I still worry that long term inflation expectations are running below our 2 percent inflation objective." Evans said on Monday at Global Interdependence Center Central Banking Series held in Madrid.
After the Fed’s less hawkish than expected statement on March 15, investors continued to digest comments from Federal Reserve officials to gauge the pulse of Fed, as the U.S. central bank seeks to gradually remove accommodative policy.
Chicago Fed member Evans’ comments had little impact on markets.
The U.S. dollar index traded at 99.01, down 0.57%.
Gold futures continued to trade close to session highs at $1,255 while Treasury yields remained in negative territory with U.S. 10-Year trading at around 2.375.
The Dow Jones Industrial Average traded 0.21% lower at 20,553. The S&P 500 shed 0.25% and the Nasdaq Composite traded higher at 5,845. The Nasdaq rebounded from a 1% loss sustained during early morning trade.