DAYTON, Ohio, April 4 Charles Evans, head of the
Federal Reserve Bank of Chicago, said on Thursday the U.S.
central bank could possibly keep interest rates near zero until
unemployment falls to 5.5 percent as long as inflation remains
lower than desired in the future.
If inflation continues to underrun the Fed's official
2-percent target, "that's something that could possibly come
about," Evans said at the University of Dayton's RISE student
The Fed has said it will keep rates near zero until
unemployment, now at 7.7 percent, falls to 6.5 percent, as long
as inflation expectations do not rise to 2.5 percent.
Evans's dovish colleague, Narayana Kocherlakota of the
Minneapolis Fed, has pitched a plan to lower that threshold to
5.5 percent joblessness.