Evans Says Fed Shouldn’t Rush Rate Rise as Inflation Undershoots

The U.S. central bank shouldn’t rush to raise borrowing costs even as the economy and job market improve because inflation may stay under target for several years, Federal Reserve Bank of Chicago President Charles Evans said.

“I don’t think we should be in a hurry to increase interest rates,” Evans said during a discussion with Lars Peter Hansen, a Nobel prize-winning economist at the University of Chicago. Later in the presentation Evans said such a move to tighten too soon would be a “catastrophe.”