Steps taken by the Federal Reserve since the financial crisis began five years ago, including a "reoriented" supervisory position can decrease the chances of a future crisis, and rate hikes should not be used to address financial risks, Federal Reserve Bank of Chicago President and Chief Executive Officer Charles L. Evans said Friday.

"Since the financial crisis, the Federal Reserve has expanded its macroprudential toolkit and enhanced its microprudential tools. We have also reoriented our approach to supervision to take full advantage of Federal Reserve System staff's wide-ranging expertise on macroeconomic and financial developments and risks," Evans told the Financial Management Association, according to prepared text released by the Fed. "I believe that these regulatory efforts can effectively minimize the risks of another crisis and increase the resiliency of the financial system. We can achieve these objectives without having to resort to wholesale changes to the financial system and without degrading our monetary policy goals."

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