Chicago Fed President Charles Evans said “inflation is quite a risk to economic growth. And Fed needs to “alter monetary policy so it is moving towards a neutral stance.” He added, if inflation accelerates, “we can hike rates even faster.”
“We need to go above a zero rate by quite a bit, and we are going to get a move on,” Evan’s noted.
He expects headline inflation to stay above 3% level by the end of this year, before dropping to 2.5% in 2023. It will take until 2024 to get inflation back to the 2% target.
