Chicago Fed President Charles Evans believes that the US will hardly raise the key interest rate until 2024. He is also sure that the US economy will need a lot of time to recover after the crises caused by the coronavirus pandemic.

However, the US economic health may improve due to a visible acceleration in the GDP growth in 2021. Moreover, the development of the effective coronavirus vaccine will also boost the economy. Earlier, the Fed intended to keep the rates at a level close to zero. The regulator emphasizes that the stance will be unchanged until inflation exceeds 2% and full employment returns.

According to Chicago Fed President Charles Evans, the 2% inflation could be reached not earlier than at the end of 2022 or at the beginning of 2023. “We are not expecting the funds rate to be raised before 2023 - probably late, maybe even 2024 in my opinion,” Charles Evans said. He has also asked the US authorities to support those who have lost jobs and cannot find new ones in sectors hard hit by the virus. “A little extra fiscal support would take a lot of uncertainty out of the current situation,” Evans added.