Charles Evans

Fed official warns against raising interest rates 'prematurely'

Fed official warns against raising interest rates 'prematurely'

Even though a global slowdown threatens the U.S. recovery, the biggest risk facing the nation's economy would be decision by the Federal Reserve to raise interest rates too soon, according to a top central bank policymaker.

The Fed should be patient in deciding when to start hiking its benchmark short-term interest rate, which has been near zero since late 2008, said Charles Evans, president of the Federal Reserve Bank of Chicago.

Fed policymakers even should be willing to accept modestly higher inflation to make sure the timing of the increase is right, he said Monday in a speech in Indianapolis.

“I believe that the biggest risk we face today is prematurely...

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