U.S. government debt yields held steady Monday as investors digested commentary from Chicago Federal Reserve President Charles Evans.
Fed President Evans told CNBC on Monday that he'd be happy to leave overnight lending rates unchanged until fall 2020 in order to help buoy inflation to a sustainable level.
"I had been thinking that inflation was finally going to be solid, hit 2% on a sustained basis — maybe go over a little bit. That was my projection," Evans said on "Squawk Box " on Monday. "And on the strength of that I had — as recently as September and December — thought that maybe a couple rate hikes were in our future."
The core personal consumption expenditures index, the Fed's preferred inflation gauge, rose to 2% in May 2018, but has failed to hit the target consistently. Some Fed officials — including Evans — have indicated they'd be comfortable letting prices rise above a 2% pace temporarily to balance out times of lower inflation.