Chicago Fed President Charles Evans said he’s “comfortable” with a 25bps hike and “open” to a 50bps move.
“We want to be careful, we want to be humble and nimble, and get to neutral before too long — maybe 50 helps, I’m open to that,” he said in a Q&A session after a speech. “I would be comfortable with each meeting increasing by a quarter point.”
“This is a signal of more general pressure from aggregate demand on today’s impinged supply,” he said in the speech. “If monetary policy did not respond to these broader pressures, we would see higher inflation become embedded in inflation expectations, and we would have even harder work to do to rein it in.”
“Policymakers need to be cautious, humble, and nimble as we navigate the course ahead,” Evans said. “Monetary policy is not on a preset course” but will be decided at each Fed meeting.