Chicago Fed President Charles Evans said, “front-loading is important to speed up the necessary tightening of financial conditions, as well as for demonstrating our commitment to restrain inflation, thus helping to keep inflationary expectations in check.”
As for the pace of tightening, he said, “I’m expecting that before December, we will have completed in any 50s and have put in place at least a few 25s.”
“If we need to, we will be well positioned to respond more aggressively if inflation conditions do not improve sufficiently or, alternatively, to scale back planned adjustments if economic conditions soften in a way that threatens our employment mandate,” Evans explained.
