Evans Repeats Fed Shouldn’t Begin Raising Rates Until 2016
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Federal Reserve Bank of Chicago President Charles Evans repeated his call to hold interest rates near zero until early 2016 and raise them only gradually thereafter, because inflation is still too far below the Fed’s goal.
“My forecast does not see inflation rising to our 2 percent target until 2018 -- for me, that’s too far down the road given how long we have underrun our target,” Evans said in a speech Monday in Stockholm. ‘I likely will not feel confident enough to begin to raise rates until early next year.’’