The Chicago Federal Reserve president acknowledged investors' nervousness around the U.S. yield curve which inverted March 22, but said the U.S. economy was in a good shape, Reuters reported.

Yields on the 10-year Treasurys dipped below the yields on three-month Treasury bills on March 22, sparking concerns over the U.S. economic growth as the inversion is seen as a prelude to a recession. At the Credit Suisse Asian Investment Conference in Hong Kong, Charles Evans said the inversion was "pretty narrow," and the lower growth trend and lower interest rates make a case for the yield curve to be flatter in general.

"I think we have to be a little bit nervous obviously," Evans said in an interview with CNBC, but highlighted strong U.S. economic fundamentals, with growth of almost 2% expected in 2019. The U.S. economy grew 2.9% in 2018 from 2017.

Meanwhile, Evans does not expect the Federal Reserve to raise interest rates until the second half of 2020, Reuters reported. The comments follow a dovish pivot from the Fed on March 20, when the central bank kept rates on hold and signaled that the next rate hike may not come until 2020.