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Fed's Evans: Should Maintain Accommodation......>

FED: Fed's Evans: Should Maintain Accommodation Until Infl On Track:
The Federal Reserve should keep interest rates where they are until there is
more evidence that inflation is back on track toward reaching the 2% target set
by the central bank, Chicago Federal Reserve Bank President Charles Evans said
Monday. Not doing that could signal a lack of concern over the fact that
inflation continues to fall short of the Fed's objective and ultimately hurt the
Fed's credibility, said Evans, who votes on rates this year. He added that he is
still "broadly comfortable" with a gradual removal of monetary accommodation and
the median Fed official's view of the fed funds rate reaching 2.7% by the end of
2019. "We should avoid taking policy steps that could be misread as a lack of
concern over the inflation outlook. In my view, that would be a policy misstep
that would further delay achieving our inflation objective," Evans said in
remarks prepared for the Economic Club of Grand Rapids in Michigan. (MNI-  For
full story visit Main Wire @17:36 BST)

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