In the proof of Corollary 4.4, on page 101, Hatcher says that for the canonical line bundle on $\textbf{CP}^n$ and $c$ the first Chern class, the Chern character is given by
$$
1+ c +\frac{c^2}{2}+\frac{c^3}{3!}+\cdots + \frac{c^n}{n!}.
$$
The reason why this sum stops at $n$ is because the cohomology groups of $\textbf{CP}^n$ are trivial past $H^n$ (and the Chern classes are elements in these groups). If we continue to apply the cup product to an element in $H^n$ (such as $c^n$) and an element in $H^1$ (such as $c$), then we should get an element of $H^{n+1}$, but that group is trivial. Hence we get zero, so all products $c^k$ for $k>n$ are zero, so they disappear in the expansion of the exponential.
Your question is when $n=1$, so everything vanishes for degree 2 and above.