Fed: Raising rates by 50 basis points at September meeting is reasonable — Charles Evans

Chicago Fed President Charles Evanssaid on Tuesday that a 50 basis point rate hike would be a reasonable assessment for the September policy meeting if inflation does not improve, Reuters reports.

Other comments

“A 75 basis point increase is fine too; I doubt a 100 basis point increase is necessary.”

“I’m still hopeful that we can do a 50 basis point rate hike in September and then continue with 25 basis point rate hikes until the start of the second quarter of 2023.”

“There is still a reasonable expectation that monetary tightening in the coming year will lead to tightening but allow for a reasonably strong labor market.”

“I see the policy rate between 3.75 and 4% at the end of next year.”

“I see the path of the unemployment rate below 4.5% with economic growth close to trend.”

“If we don’t see an improvement in inflation in the coming months, we may have to rethink the rate path a bit higher.”

“We may have a soft landing, but there are a lot of risks.”

“A recession is not healthy; so is inflation this high.”

“It is important to keep an eye on where monetary policy has to go in the medium term.”

“It would not be surprising if the unemployment rate rose to the region of 4.25%.”

“I think the unemployment rate will stay below 4% this year.”

“I have lowered my economic growth forecasts for this year a bit, probably looking at 1% or less.”

“We need to start getting less ugly inflation reports soon.”

“We have to be aware that inflationary pressures may be building.”

“A gentler tilt once we get a slightly restrictive level would be a good way to go, but it depends on the data.”

market reaction

The dollar index did not show an immediate reaction to these comments and was last seen up 0.45% on the day at 105.88.