Chicago Fed President Charles Evans said the Fed's policy rate will be set to 4.50-4.75% by the spring of 2023 to raise borrowing costs to bring down extremely high inflation. "We still have room to go in rate hikes," said Evans. "Inflation is high right now and we need to bring our monetary policy to a more restrictive level."
Stating that they were late in becoming aware of how persistent and widespread inflation is, and therefore they brought interest rates from zero to 3-3.25 percent in 7 months, Evans said, "We will start to slow down the strong labor market and increase unemployment, which is currently 3.7 percent." spoke.
Evans, when asked whether there will be another 75 basis point rate hike at the November 1-2 meeting, replied, "There will be a discussion about this rate," and stated that he expects a 125 basis point increase in the next 2 FOMC meetings.
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