Charles Evans, president of the Chicago Federal Reserve, said on Wednesday he's so worried about weak consumer prices that he'd be okay with inflation cruising above the Fed's target of 2% to avoid suffering from a loss credibility like the Bank of Japan. The Japanese central bank abandoned its zero-rate policy in 2000 and hiked interest rates in a surprise move, which has since been criticized by many economists. "They've been suffering the consequences of that loss of credibility for a very long period of time," Evans said at the London event. "I'd rather see inflation go above 2% a little bit, maybe 2.5%, than having to worry about a situation like that." The Chicago Fed president repeated his stance that it's better for rates to stay low for longer, advocating for a rate hike in 2016 rather than 2015.
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