Fed's Evans: labor market should inform new low-rates pledge

COLUMBUS, GA, March 10 Mon Mar 10, 2014 2:07pm EDT

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COLUMBUS, GA, March 10 (Reuters) - The Federal Reserve should revamp its so-called forward guidance by reinforcing that interest rates will stay low for "quite some time" and that much will depend on continued improvement in the labor market, an influential U.S. central banker said on Monday.

"It ought to be something that captures well the fact that (rates are) going to continue to be low well past the time that we change the language," Chicago Fed President Charles Evans told reporters at Columbus State University.

"Tick through the different labor market indicators: payroll employment, unemployment, labor force, vacancies, job openings and things like that," he said of how to craft the message to markets. "We somehow want to capture that general improvement in labor market indicators, but that is hard."

Evans added: "We're going to have accommodation for really quite some time."

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