Chicago Fed President Charles Evans made a statement that the US Federal Reserve plans to raise interest rates in the range of 4.50% to 4.75%. The position taken is more aggressive, which indicates a tightening of the central bank's policy.
Evans also noted that he does not expect "recession-like" unemployment rates in the future, even though the Fed's actions lead to below-trend economic growth and easing in the labor market to bring inflation down to the 2% target set by the central bank.
“My own position is roughly in line with the median assessment”, Evans said in a speech at the Official Monetary and Financial Institutions Forum in London, referring to the Fed's latest quarterly outlook report.
The Fed plans to raise the interest rate, which is now in the range of 3-3.25% after raising by 75 basis points last week, to 4.4% by the end of the current year and to 4.6% by the end of next year.