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Fed’s Evans Says Low Inflation Makes Rate Rise Too Risky in 2015

Federal Reserve Bank of Chicago President Charles Evans, who votes on policy this year, said inflation remains too low to justify an interest-rate increase in 2015, despite “terrific” progress in reducing U.S. unemployment.

“I see no compelling reason for us to be in a hurry to tighten financial conditions until” it’s clear that inflation will reach the Fed’s 2 percent target within one or two years, Evans said in London on Wednesday. “Economic conditions are likely to evolve in a way such that it will be appropriate to hold off on raising short-term rates until 2016.”