Chicago Federal Reserve Bank President Charles Evans is looking forward to the time when the US economy is sturdy enough to handle an interest rate hike.
Evans, one of Fed’s most dovish policymakers, indicated the US central bank needs to be cautious not to raise rates if it will need to slash it again shortly afterward.
I believe it is costly to mull over a high probability we are going to reexamine “the zero lower bound, after a period where we’ve gotten ourselves out of this, over the next 10 years,” said Evans.
Since the 2007-2009 financial crisis, the Fed has retained interest rates near zero for almost seven years.
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