Fed's Evans Sees Global Uncertainty As Biggest Risk To U.S. Economy

Charles Evans, president of the Chicago Federal Reserve, warned on Wednesday that global uncertainty is the biggest risk to the U.S economy, advocating interest rates stay low until 2016. Speaking to press after a speech in London, Evans said the U.S. economy is the strongest it's been since the financial crisis began, but stressed that the low levels of inflation and global uncertainty are key concerns. "You put all those things together and I think it's more prudent to take your time to assess the circumstances and things will turn out well in the U.S. and for the global economy and then we'll begin tightening." When asked about the worst-case scenario for a premature rate hike, the Chicago Fed president said "we'd find out most of this strength is actually premised on highly accommodative policy, which is now being taken away, and then it doesn't proceed as well."