Chicago Federal Reserve Bank President Charles Evans on Monday signaled he would not necessarily oppose getting interest rates up to a neutral setting of 2.25 percent to 2.5 percent by the end of the year, a pace that would require a couple of 50 basis-point rate hikes at upcoming Fed meetings.
“Fifty is obviously worthy of consideration; perhaps it’s highly likely even if you want to get to neutral by December,” Evans told the Detroit Economic Club.
But, he added, the Fed should not raise rates so fast that it doesn’t have enough time to assess inflation pressures and adjust policy in response.
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