• Fed should be willing to risk temporary, modest rise in inflation to lower jobless rate
  • Fed should keep rates near zero until unemployment falls below 7% or inflation threatens to top 3%
  • Fed’s Evans see US unemployment well above sustainable levels for some time to come
  • US wage pressures practically nonexistenet; inflation to stay near or below Fed’s 2% target for medium-term
  • Developments in Europe pose significant downside risk to US, world growth
  • Messy resolution to ‘fiscal cliff’ risk could hurt US, world growth
  • Raising rates now would be ‘very bad policy’ and would slow growth

Reuters reporting.