Fed's Evans sees dangers from premature rate hike

WASHINGTON (AP) — A Federal Reserve policy-maker says the central bank should be "exceptionally patient" before raising interest rates, even if it means over-shooting the Fed's inflation target for a time because the risks of moving too quickly remain sizable.

Charles Evans, the president of the Fed's Chicago regional bank, says that despite improvements in the job market, the economy still needs help from the prolonged period of low rates. He says there have been many examples of central banks that have raised rates too soon and then faced bigger problems in jump-starting economic growth.

Evans is one of the Fed's most vocal "doves," officials who believe inflation is a distant threat and that central banks' major goal remains boosting a weak jobs market. He made his remarks during a speech in Washington.