Fed-funds Rate Could Still Be Below 1% At End Of 2016: Evans

Interest rates could be below 1% at the end of 2016, Chicago Fed President Charles Evans said Friday. In a speech in Milwaukee, Evans stressed that the timing of the first rate hike was not as important to him as the pace of subsequent moves. "Accordingly, when thinking about the initial stages of normalization, I find it useful to focus on where I think the federal funds rate ought to be at the end of next year given my economic outlook and assessment of the risks. And right now, regardless of the exact date for lift-off, I think it could well be appropriate for the funds rate to still be under one percent at the end of 2016," Evans said. The Chicago Fed President, a voting member of the Fed policy committee, doesn't think the U.S. central bank should hike rates for the first time until the middle of next year.