If the Federal Reserve manages to rein in inflation while sustaining unemployment levels under 5 percent, that would be considered “good,” said Charles Evans, president of the Federal Reserve Bank of Chicago, on Wednesday in remarks at the University of Virginia.
Based on policy projections outlined after the September Fed meeting, interest rates targeted at 4.6 percent and unemployment at 4.4 percent could suggest that the economy “doesn’t actually go into a recession,” and if the unemployment level is below 5 percent, “that would be pretty unusual and good,” Evans said.
The Fed is expected to raise rates by another 75 basis points, for the fourth straight time, in the coming weeks, after calling for continued rate hikes until there is a cooling of inflation. The increases in interest rates will make borrowing difficult for businesses and lead to slower economic growth with a likely uptick in unemployment….