Evans told reporters he was still hopeful that if inflation finally began to subside, the Federal Reserve could go ahead with a 50 basis point increase at its next two meetings this year and then a series of 25 basis point increases over the first half of next year.
The Fed raised its benchmark interest rate by 75 basis points last week, to a target range of 2.25 percent to 2.50 percent.
The interest rate has seen increases of 225 basis points since March, while US central bank officials battle against hyperinflation that shows few signs of abating in the short term.
Evans said he believed interest rates would have to rise to between 3.75 percent and 4.0 percent by the end of next year, but cautioned against an overly fast path to reach that range.
Federal Reserve Chairman Jerome Powell confirmed last week that the central bank may consider another “unusually large” rate increase at its next meeting on September 20-21, adding, “His officials will guide their decision-making with more important data, which includes Inflation, employment, consumer spending and economic growth, between now and then.”
Evans said he had lowered his forecast for US economic growth this year and now expects growth at 1 percent or less, but added that he still saw a path in which the Fed could bring down inflation while keeping the unemployment rate below 4.5 percent.
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