Rate hike might be delayed until 2016, warns leading Fed official

Washington (Mar 26)  US Federal Reserve should not hike interest rates until 2016, one of its officials said yesterday.

"I think economic conditions are likely to evolve in such a way that it will be appropriate to hold off on raising short-term rates until 2016,"  Charles Evans  - a member of the committee that decides policy - told a  London  audience.

One of his main concerns was the "number of people who are involuntarily employed part-time remains unusually high."

"If the economy were closer to full employment, these individuals would have more opportunities to find full-time jobs."

He added: "Economic activity appears to be on a solid, sustainable growth path.

"However, inflation is low and is expected to remain low for some time — and I have serious concerns that inflation will run even lower than I expect."

Source: KitcoNews