Chicago Fed's Evans: Inflation is on its way to reaching objectives

Federal Reserve Bank of Chicago President Charles Evans said the USA central bank could raise short-term interest rates four times this year if inflation picks up, but suggested lifting rates three times remains more plausible.

Evans voted with his colleagues on the USA central bank's policy-setting Federal Open Market Committee to raise rates on March 15, when the group last gathered. Uncertainty as a theme at this stage is hard to fade - so we won't attempt to skew the odds that we'll get more (or less) out of the Fed just yet, but as Evans also noted he 'would be surprised if data suggest the FOMC should hike in May.' That's certainly a sentiment with which most participants in the market can readily agree.

As of 1638 GMT fed funds futures were pricing in a 96.1% probability that the target range for the Fed funds rate would be at between 1.50% and 1.75% by the time of the 31 January FOMC meeting.

On Tuesday, Kansas City Fed President Esther George will deliver a keynote address about the USA economy and monetary policy in Oklahoma.

A parade of Federal Reserve speakers will make headlines this week, giving investors plenty to talk about in the absence of economic data.

Fed Bank presidents Charles Evans (Chicago), Eric Rosengren (Boston) and John Williams (San Francisco) are also scheduled to speak on Wednesday.