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)