The Chicago Fed President Charles Evans said in London on Wednesday that there is no reason to hike interest rate until 2016 due to low inflation. He added that it is better to wait until it is clear that inflation will reach the Fed's 2% target.

Evans believes that inflation will not reach the Fed's 2% until 2018. He noted that a stronger U.S. dollar is the downside risk to inflation. "The stronger dollar presents a clear disinflationary pressure through its influence on U.S. import prices", the Chicago Fed president said.

Evans is a voting member of the Federal Open Market Committee this year.