The U.S. Federal Reserve will need to raise interest rates to a range between 4.50 percent and 4.75 percent, Chicago Fed President Charles Evans said on Tuesday, a more aggressive stance than he has previously embraced that underscores the central bank’s hardening resolve to quash excessively high inflation.
Evans also said that he does not see “recession-like” unemployment rate numbers ahead, even as the Fed’s actions result in below-trend economic growth and a softening in the labor market to bring inflation back down to the central bank’s 2 percent goal.
“My own viewpoint is roughly in line with the median assessment,” Evans said in a speech to the Official Monetary and Financial Institutions Forum in London, referencing the Fed’s latest quarterly summary of policymaker projections….