Fed's Evans expects rates to peak at 4.50-4.75%

Evans was still advocating for a peak rate of 4% earlier this month. His shift in view was influenced by the widening range of price pressures in recent economic data. “I have a sobering assessment that we have more work to do,” Evans said. “I’m optimistic that the peaks we set will be sufficiently restrictive and may be sufficient.” on Monday , other Fed policymakers shrugged off rising volatility in global markets, from a slump in U.S. stocks to currency turmoil abroad, and said their top priority remained domestic inflation.

Evans said he expects inflation to cool sharply over the next two years, noting signs of pressure on the labor force. Extraordinary demand is easing and supply chains are starting to loosen, although he acknowledged risks to his outlook are skewed to the downside. “Supply-side repairs may continue to be slow; events in Ukraine or further COVID-related shutdowns could put additional pressure on costs; on the one hand , monetary policy may not be able to keep inflation in check or, on the other hand, have too much of an impact on employment,” Evans said.

called on the Fed to “remain vigilant” and adjust policy “if changes in the economic environment dictate,” Evans said.

Federal Reserve Chairman Jerome Powell warned last week that interest rates would remain at their peaks for some time as the economy faced “painful” central bank cooling demand, a sentiment echoed by his colleagues. What investors are currently seeing is 10 another probability

– The Fed raises rates at its next policy meeting on Nov. 1-2, based on an analysis of compiled federal funds futures contracts Basis points by CME Group (NASDAQ: 75CME

).