Top Fed offficial repeats call for 'shallow' US rate hikes, citing downside risks

A man walks past the Federal Reserve building in Washington.
A man walks past the Federal Reserve building in Washington.PHOTO: REUTERS

HONG KONG (REUTERS) - A top Federal Reserve policymaker on Tuesday (April 5) repeated his call for just two US interest-rate hikes this year, saying that the risks to his forecast for economic growth are weighted to the downside.

"A very shallow funds rate path, such as the one envisioned by the median FOMC participant, is appropriate," Chicago Fed president Charles Evans said in remarks prepared for delivery in Hong Kong.

The FOMC, or Federal Open Market Committee, is the Fed's policy-setting body. In March the FOMC's median forecast called for two rate hikes this year.

Mr Evans' remarks were very similar to those he made last week in New York. He does not vote on monetary policy this year.