- Fed’s Evans: Should raise rates to 2.25%-2.5% neutral range 'expeditiously'
Market news
Fed’s Evans: Should raise rates to 2.25%-2.5% neutral range 'expeditiously'
Chicago Fed President Charles Evans on Wednesday said, per Reuters, “(the Fed) Should raise rates to 2.25%-2.5% neutral range 'expeditiously'.”
Additional comments
Favors 'front-loaded' interest rate hikes.
After front-loading rate hikes, hopeful we can transition to more measured pace.
Measured pace would give time to monitor supply chains, evaluate impact of tighter policy.
May need to take policy 'somewhat' above neutral to achieve 2% inflation goal.
Inflation is clearly much too high.
Modestly restrictive stance will still be consistent with growing economy.
US. economic momentum 'strong,' labor market 'downright tight'.
Expect substantial deceleration of core inflation as pandemic-related price pressures ease.
Monetary policy has critical role in addressing broad-based runup in prices, keeping expectations in check.
Market reaction
EUR/USD remains unaffected by the news as it continues to grind higher around 1.0550 at the latest.
Read: EUR/USD seeks fresh clues around 1.0550 after the biggest daily gain in two months
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