US Fed rate hikes not needed till mid-2018 as inflation is low: Prez Evans

Sluggish price increases in the United States give the Federal Reserve room to hold off on interest rate increases until at least mid-2018, Chicago Federal Reserve President Charles Evans said on Wednesday.

"If we get to that point and have more confidence that inflation is moving up sustainably, then further rate increases would be warranted," Evans, who does not have a vote on rates this year but participates in the central bank's policy debates, said in a speech at a banking conference.

Evans did have a vote on the Fed's policy-setting committee last year and dissented in the Fed's decision to raise rates in December because of his concerns over low US inflation rates, which have been persistently below the Fed's 2 percent target in recent years. Investors expect the Fed will raise rates in March and policymakers in December signaled three hikes would be warranted this year.