Fed's Evans says strong dollar a challenge, but transitory

Chicago Federal Reserve President Charles Evans said on Wednesday the dollar's recent appreciation would weigh on inflation by lowering import prices but that this would be short-lived. "To the extent that whatever movements in the dollar take place and then there’s some level of stability, that change in import prices unwind," Evans, an advocate for restraint in raising U.S. interest rates, said. Evans was speaking in London at an conference being hosted by the Official Monetary and Financial Institutions Forum. The dollar index hit a 12-year high earlier this month against a basket of major currencies but has lost some ground since the Fed downgraded its forecasts for growth, inflation and interest rates last week.

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