Chicago Fed’s President Urges Central Bank to Be Patient on Rates

Chicago Federal Reserve Bank President Charles Evans on Wednesday again urged the U.S. central bank to be “exceptionally patient” on raising rates, noting downside risks to both growth and inflation.

With longer-term inflation expectations falling near post-crisis lows, Evans said he was “concerned about the possibility that inflation will not return to our 2 percent target within a reasonable period of time.”

That, coupled with continued slack in labor markets, argues for “being patient about when we first increase the federal funds rate and being patient about setting the pace of rate increases once we have begun to move,” he said.

The Fed has kept interest rates near zero since December 2008 and has bought trillions of dollars of long-term securities to push borrowing costs still lower.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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