Evans Says Fed Should Delay Liftoff, Inflation Risks Overblown
- Inflation headwinds may not abate until middle of 2016
- Later liftoff and gradual tightening is best path, Evans says
Charles Evans, president of the Federal Reserve Bank of Chicago.
Photographer: Price Chambers/BloombergThis article is for subscribers only.
U.S. monetary policy makers should delay raising interest rates until inflation shows signs of sustained upward movement, which may not happen until mid-2016, said Federal Reserve Bank of Chicago President Charles Evans.
"Before raising rates, I would like to have more confidence than I do today that inflation is indeed beginning to head higher," Evans said Monday in remarks prepared for a speech in Milwaukee. “I think the best policy is to take a very gradual approach to normalization.”