Tweaking his previous statements, Federal Reserve Bank of Chicago President and Chief Executive Officer Charles L. Evans said Tuesday the fed funds rate should be kept near zero until unemployment is below 6.5% as long as inflation stays under 2.5%.

Previously, Evans advocated keeping rates near zero until unemployment fell below 7% as long as inflation didn't hit 3%, measured in terms of the outlook for total PCE (personal consumption expenditures pride index).

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.