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U.S. ECONOMICS: Chicago Fed President Evans See Inflation As Key to Rate Hike

Speaking in Istanbul last night, Chicago Fed President Charles Evans believes that the decision by the Federal Reserve to raise short-term interest rates depends on whether inflation targets have been met, which means a rate hike might not occur until 2016.

Evans said that in respect of current economic conditions it is "appropriate for monetary policy to remain highly accommodative well into 2015...and could even be 2016."

While the Fed has a 2% target rate for inflation, Evans said that this rate should not be considered a ceiling and could be higher.

As for the labor market, the decline in the participation rate might result in a gain in the jobless rate, a scenario that the Fed already anticipates as it develops monetary policy for the remainder of the year.

Charles Evans is not a voting member of the FOMC and is considered one of the most dovish members of the Fed.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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