Fed’s Evans sees no reason to hike rates unless inflation soars

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FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans looks on during the Global Interdependence Center Members Delegation Event in Mexico City, Mexico, February 27, 2020. REUTERS/Edgard Garrido

July 16, 2020

(Reuters) – Chicago Federal Reserve Bank President Charles Evans said on Thursday he would be “hard-pressed” to think of any reason to start to raise interest rates unless inflation soars above the Fed’s 2% target, a development he said was unlikely.

Evans forecast U.S. unemployment to fall only to 6.5% by the end of next year, above the level many economists see as consistent with full employment. That means that monetary policy will still need to be very easy, Evans said in a virtual event held by the Global Interdependence Center.

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

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