Fed's Evans support another one or two increases this year

An improved outlook for inflation and a drop in the U.S. jobless rate to 4.7 percent, near what many economists see as full employment, help explain "why my current dual mandate outlook allows me to support another one or two increases this year," Chicago Fed President Charles Evans said in remarks prepared for delivery at the DZ Bank-OMFIF International Capital Markets Conference in Frankfurt.

Key quotes

• For the first time in quite a while, I see more notable upside risks to growth
• A sturdier economy would be able to handle a steeper path of rate increases
• Even inflation of 2.5 percent "for a time" would be consistent with the Fed's 2 percent goal
• We all certainly would like to have a surge in sustainable growth to the 3 to 4 percent range
• Odds of achieving such large gains in the current demographic and economic environment seem to be pretty low
• The precise details of any final legislation remain unclear, so it’s difficult to evaluate their potential implications
• Tthe general thinking is that such policies could boost growth for a time