2017.10.1519:50:00UTC+00Chicago Fed Chief Says Latest Inflation Data Not Promising

Federal Reserve Bank of Chicago President Charles Evans said that the weaker-than-anticipated data on U.S. inflation in September was not 'encouraging', as the central bank officials mull over the possibility of raising rates once more despite the persistent failure of the inflationary pressures to rise as projected.

On Friday, a report on prices released by the U.S. Labor Department showed core inflation just rose 0.1 percent in the previous month.

Evans said the monthly figures were lower than the Fed's targets. The voting member of the Federal Open Market Committee has been a consistent supporter of a gradual pace of rate hikes in order to ensure than inflation is higher than the Fed's two percent target, which has not been reached for the majority of the previous five years.

The CPI for September marked the sixth month out of seven that the inflation figures did not meet projections, an unwelcome news for Fed officials. The FOMC has lifted rates four times since they started tightening policy in December 2015 on the basis of their outlook that the improving labor market conditions would lift inflation.

The Chicago Fed chief said that there remains a 'lot of hope' in the majority of the U.S. central bank's inflation projections right now. He added that it would be good to receive more positive inflation signals.