LONDON (Reuters) - U.S. productivity may be returning to the slow growth rates seen after the 1973 oil price shock which, combined with less labor force growth, will push down on real interest rates, Chicago Federal Reserve Bank President Charles Evans said on Friday.
Speaking at an event in London hosted by the Philadelphia-based Global Interdependence Center, Evans said it was important that inflation should rise higher and avoid the risk of a Japan-style trap of persistent falling prices.
However, he said he did not think a recession in the United States was more likely than his colleagues did, and he expected moderate economic growth.
Reporting by David Milliken; editing by William Schomberg
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