Economics

Evans Says Two Fed Hikes in 2017 May Be Right

  • Could support more tightening if confidence in forecast rises
  • Kaplan later repeated call for gradual pace of rate increases

Federal Reserve Bank of Chicago President Charles Evans discusses Fed policy with Bloomberg's Mike McKee on 'Bloomberg Markets.' (Source: Bloomberg)

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Federal Reserve Bank of Chicago President Charles Evans said two interest-rate increases may be the right amount of tightening for the U.S. economy this year given uncertainty surrounding the outlook for inflation and government spending.

“To the extent that I gain more confidence in the forecast I have, that would be a good indicator that I could perhaps support three,” Evans said Monday in a Bloomberg Television interview from Madrid with Michael McKee. “Two might be the right number if there’s a little bit more uncertainty.”