Fed's Evans sees no rate rise before mid-2015

The U.S. Federal Reserve will need to keep rates at rock bottom until late 2015 and then increase them only moderately over the next year because it would otherwise risk derailing a building economic recovery, a top Fed official said on Friday. "I personally doubt that the funds rate is going to start to increase before the middle of 2015," Chicago Federal Reserve Bank President Charles Evans told the Credit Suisse investment conference in Hong Kong. Last week, Fed Chair Janet Yellen roiled financial markets by saying that after the Fed wraps up its bond-buying stimulus, likely before the end of the year, rate rises could come around six months later. He expects the federal funds rate to be at 1.25 percent at the end of 2016.

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