With inflation still kept at pay, interest rates can go up in a gradual manner without causing the economy to overheat, Chicago Fed President Charles Evans said. The central bank official said that even though a low unemployment rate normally would cause pressure on prices and wages, both inflation readings and expectations remain low. That gives the policymaking Federal Open Market Committee breathing room as it seeks to normalize policy. "I think we have the opportunity to more patiently read — and react to — the incoming data," Evans said at a speech in Chicago. "That is, I think we can undertake more moderate ... (full story)

A few years ago, the Federal Reserve System commemorated its 100th year. The institution and the economy have evolved quite a bit since the Fed’s creation in 1913. But the Rotary Club’s got us beat! It was founded in 1905, right here in Chicago, and has been an integral part of the community ever since. Its influence has expanded well beyond its beginnings when members would rotate hosting the club’s weekly meetings. I am pleased to speak to you today and to continue the tradition of public engagement that you foster. Before I begin, let me remind you that my comments are my own and do not necessarily reflect the ... (full story)