Fed’s Evans: We Should Wait Until 2016

The U.S. Federal Reserve should keep interest rates near zero until early next year and raise them only gradually, Chicago Fed President Charles Evans said on Wednesday, citing the need to boost inflation to a more healthy level.

“Policy should be sufficiently accommodative so that … the odds should favor modestly overshooting our 2 percent target sometime in the medium term,” Evans said in remarks prepared for delivery in Munich at a symposium of the National Association for Business Economics.

The remarks by Evans, who is a voting member this year on the U.S. central bank’s policy-setting panel, were nearly identical to those he made two days earlier in Stockholm.