Chicago Fed’s Evans believes it's time to slow pace of rate increases

According to Charles Evans, the outgoing leader of the Federal Reserve Bank of Chicago, it’s the right time for the Fed to slow its aggressive rate-hike pace. He notes that such actions will be necessary even if inflation continues to rise in the coming months.

Evans sees advantages in adjusting the Fed policy in the near term. In addition, he hopes that the dynamics for inflation will change and it will be brought back to the 2% target in the near future. 

Evans plans to retire from the position after serving as the president of the Federal Reserve Bank of Chicago for 15 years. For most of his tenure he has held one of the most dovish positions of any Fed official. 

The politician admitted that he did not immediately realize the need for tight monetary policy as a sharp rise in inflation was seen. At the same time, Evans was concerned that further tightening could lead to a recession, and warned that inflation could fall below the central bank's 2% target. 

As reported by him, further rate hikes will trigger a recession and put the Fed's employment mandate at risk.

The president of the Federal Reserve Bank of Chicago frets about the fact that a tighter monetary policy will result in serious economic problems and be an obstacle to the Fed's full employment mandate.