June 03--The economy continues to be too weak for an interest rate increase and likely won't be ready until sometime in 2016, Chicago Federal Reserve President Charles Evans said Wednesday.
Inflation remains too low, wages aren't growing adequately and employers are still reluctant to add employees, he said.
Savings levels are high because of continued uncertainty, he added.
Evans said he thinks unemployment should be at 5 percent or lower, not the recent 5.4 percent. And inflation should be at 2 percent, not 1.2 percent.
He said raising rates too quickly could slow the economy. Japan did that and weakness undermined confidence, he said.
Europe made the same mistake in 2011, he said.
gmarksjarvis@tribpub.com
