At the University of Michigan before the members of the regional Chamber of Commerce, Charles Evans suggested that the relatively higher interest rates on future Fed meeting experiencing some nervousness.
Adding that the leadership of the Central Bank, it is important to prove the intention of raising rates in the coming months and years gradually.
Evans is not sure about the acceleration of inflation in the future, he noted that low energy prices and a strong currency States is likely to cause a rise in core inflation only towards the middle of next year.
Chicago Fed President said that it is important to convey information to investors because of these signals depends on the further behavior of the market participants. Even if at the December meeting of the Operations Committee on the open market will take a decision on increasing, it is important to tell the plans for further gradual increase in interest rates, and the key word here is gradual.
Since December 2008, interest rates are close to zero. Judging by the speeches of members of the Federal Reserve, and the signals from them, the conclusion that at the meeting of 15-16 December FOMS support the rate hike.
John Williams, president of the Federal Reserve Bank of San Francisco on November 21, said that under the condition of strong economic data and achieve their goals on inflation of 2 per cent over the next two years, there is good reason to speak to raise interest rates in December.
This year, the president of the Chicago Fed Evans in the right to vote in the Committee Operations on the open market, which means that he will be in the minority, if the Fed decides to the first interest rate hike at the upcoming meeting. Last month, Evans held the position to postpone the increase in interest rates, after increasing further raise rates gradually. Previously, he has said that until 2016 would like to postpone the rate hike.
According to the materials WELTRADE