Fed’s Evans: Would prefer to raise rates and hold for some time rather than raise too far
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Federal Reserve Bank of Chicago President Charles Evans said policymakers could deliver a third straight jumbo increase in interest rates when they gather on September 20-21, but he is opened minded between a 50 or 75 basis point hike.
”I’m open-minded on 50 bps or 75 bps rate hike for Sept.”
”Will monitor breadth of inflation, and if anything surprises on wages may need to get to peak rate sooner.”
”Signs of inflation cooling won’t change need to get to peak fed funds rate of 4%, but maybe not as soon.”
”Don’t have ‘heartburn’ about getting to peak 3.75%-4% fed funds range by year-end or January.”
”Dollar strength shows the confidence we’ll get inflation back down.”
”Hopeful that unemployment won’t do all the work getting inflation down; will be special factors, supply chains.”
”Need to be confident inflation is heading back down to our 2% objective.”
Would prefer to raise rates and hold for some time, rather than raise too far and then have to cut.
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