Chicago Fed President Charles Evans said yesterday that he expected interest rate to be above neutral at 2.25-2.50% by the end of the year.
“That’s my expectation, when I see that, taking out special factors, I’m still left with 3 to 3.5% inflation” by the end of 2022, he said. “That’s not what we want. If we’re at a 2.5% inflation rate, I think we have more things to ponder there.”
“By December, we’re going to get more data on the micro aspects of the high inflation, price increases, how much is it broadening out,” Evans said. “By that time, we’re at neutral, and to the extent we don’t see it coming down, we’re going beyond neutral, absolutely.”
