Thursday, June 1, 2023
HomeEconomyFed's Evans says 'first job' is to lower inflation

Fed's Evans says 'first job' is to lower inflation

(Reuters) – Chicago Fed President Charles Evans said on Thursday, along with other U.S. central bank policymakers, that reducing high inflation is “a job” and that the Fed is “very likely” to raise interest rates by Egypt Another 75 basis point this month, Vince told an economic forum at the college. Dupage in Glen Ellyn, Illinois.

“We don’t want to unnecessarily restrict the economy,” he said. “But we do need to focus on a high inflation environment,” the Fed’s preferred measure of inflation, now 6.3%, has been above the central bank’s 2% target since last spring.

Said he had not decided on the right move in September. 20- At the policy meeting, Evans made it clear that the Fed’s policy rate — now at 2.25%-2.50% – must rise to what he thinks should be 3.25%-3.20% range, to around 4. % next year.

The U.S. unemployment rate, currently at 3.7 percent, will also climb, but only as high as around 4.5 percent, well below expectations for an inflationary war caused solely by Fed rate hikes, Evans said.

He added that he expects inflation to fall below 3% next year, not only due to Fed rate hikes, but also due to the pandemic-intricate supply Chains, the main driver of global inflation, are now loose.

As for U.S. growth, he said, “I think we’ll get through it,” with about 0.5% GDP growth this year and no contract.



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