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Too early to gauge U.S. strikes' effect on outlook, says Chicago Fed head

|About: iShares 20+ Year Treasury B... (TLT)|By: , SA News Editor

It's too early to say how the U.S. airstrikes in Iraq that killed a top Iranian general may affect the U.S.'s  economic outlook. Chicago Fed President Charles Evans said in an interview on CNBC.

"At the moment, I think the fundamentals for the U.S. economy are good," he said.

Interest rates are likely to stay where they are if inflation remains stable, he said.

“We really need to keep our eye on inflation,” the central bank official said. “And unless it starts to go up to something that is consistent with our 2% symmetric inflation objective, I think we are pretty well set for policy.”

He didn't close the door to further cuts this year, though, as inflation hasn't been rising the way the Fed expected.

“We should have seen inflation," he said. "There must be so much more at work that we may need more accommodative monetary policy.”

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