The U.S. Federal Reserve shouldn’t hurry to tighten monetary policy, although growth prospects are improving, according to Charles Evans, the president of the Federal Reserve Bank of Chicago, the Financial Times reported.
In an interview with the newspaper, Evans, who is a member of the rate-setting federal open-market committee this year, said inflation is still low and monetary policy should remain relaxed until the risk of a “liquidity trap” diminishes.
He said he wouldn’t favor a policy tightening until there is robust demand growth, led by consumer spending and business investment, and evidence that companies are taking on more staff, the FT reported.
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