Comments from the Fed's Evans
- Gradual and cautious approach to policy normalization is appropriate
- He's broadly comfortable lifting rates to 2.7% by end of 2019
- Concerned inflation expectations are too low
- Should maintain policy accommodation until inflation non sustainable path to 2%
- Recent data suggest inflation will soon rise to 2%
So he doesn't want to hike until inflation and wages are climbing but he's also confident that data will show higher prices, although "little in the recent data that suggests inflation will soon rise to target."
That's somewhere between caution, cautious optimism and delusional optimism.
