• Aug. 23, 2017, 6:34 pm

Fed’s Evans: stronger wage growth could convince of need to hike rates

MUNICH (Reuters) – The Federal Reserve should consider increasing rates if core inflation moved substantially above 1.5 percent or unemployment stayed steady at 5 percent, Chicago Fed President Charles Evans said on Wednesday.

Evans said that substantially stronger wage growth would also be a strong indicator that could convince him of the need to rise rates earlier. He earlier signaled that he saw early 2016 as a good time to act on rates.

“Substantial stronger wage growth would be a very strong indicator (for a rate hike),” Evans told journalists in Munich. “But that’s not my expectation.”

(Reporting By Joern Poltz; writing by John O’Donnell; editing by John Stonestreet)

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