MNI: Evans Says Fed Can Be Patient And Hold Rates Next Year

Chicago Fed President Charles Evans said Monday that policy interest rates can remain unchanged next year because inflation pressure should fade away.

"We have time to be patient," he told reporters after a speech when asked about a rate increase. "I don't think it's until 2023."

Inflation pressure "still smacks of supply shocks," though price expectations bear close monitoring, he said. While the gains have been going on longer than Evans anticipated, he said inflation may move closer to 2% next year than many people currently think.

Former officials have told MNI that an ambiguous year-old inflation-targeting strategy allows the FOMC an unprecedented degree of flexibility as to when to raise interest rates, meaning it could wait beyond next year.