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

(Bloomberg) — 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.”

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