Chicago Fed president Evans is speaking in Iowa this afternoon and has some tidbits for both hawks and doves alike

For the hawks:

  • Some data has surprised to the upside, could exceed expectations
  • Leaving highly accommodative policy in place too long would eventually fuel inflationary pressure
  • Monetary policy must not be passive if it is to achieve a benign inflation outcome
  • Fed alert for incipient signs of inflation

For the doves:

  • Tight credit will restrain recovery
  • Headwinds will abate during 2010 but unemployment will decline only modestly
  • Inflation relatively stable but uncertainty exists
  • Increase in bank reserves not inflationary as most sitting idle

Expect the Beige book to be similarly structured a bit later this afternoon.