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Evans, who has long argued for a delay to rate
hikes so as not to undermine economic recovery, said that the
U.S. central bank should not move on rates until there was
greater confidence that its inflation goal could be hit within
one or two years.
"Inflation is too low," Evans told an audience in Munich. "The
FOMC (Federal Open Market Committee) should refrain from raising
the federal funds rate until there is much greater confidence
that inflation one or two years ahead will be at our 2 percent
target."
"It likely will not be appropriate to begin raising the Fed
funds rate until some time in early 2016," said Evans, who is a
voter this year on Fed policy and among the most dovish of U.S.
central bankers.
Evans argued for rates to start rising in early 2016 in a speech
in Stockholm on Monday, though he also said the Fed could look
at a hike in June if the economy was strong enough.
Nearly all of his peers, including Fed Chair Janet Yellen,
believe an interest rate hike will be appropriate some time this
year, although the exact timing is up for debate.
The Fed's policymaking Federal Open Market Committee meets next
on June 16-17.
(Reporting by Joern Poltz; writing by John O'Donnell; editing by
John Stonestreet)
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