Fed Evans Says Quite Some Time Before Rate Hike

Chicago Fed President Charles Evans told CNBC on Monday that he believes it would be “quite some time” before it’s appropriate to start increasing interest rates from their near-zero levels.
Evans sees June 2015 as a possibility for the first rate increase, but said on “Squawk Box if it were his decision, he’d wait even longer. “If you look at the risks, we ought to balance those and be concerned that sometimes coming out of zero [rates] … is really a difficult proposition for the economies. And so I’d like to be patient.”

Evans is one of the Fed’s dovish regional chiefs. While not a voting member on the central bank’s policymaking committee this year, he’s a 2014 alternate and will be voting next year.

While saying he’s confident the U.S. economy is getting stronger and will continue to do so, Evans wants to make sure it is strong enough before moving rates higher. He also wants to see inflation get to the Federal Reserve’s 2 percent target—saying he’d be willing to “overshoot” modestly on inflation to help boost jobs.

Evans said he doesn’t see evidence of financial market bubbles.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza