The U.S. central bank will probably raise interest rates above levels it considers neutral for the economy next year given the outlook for inflation, Federal Reserve Bank of Chicago President Charles Evans said.
“Probably we are going beyond neutral,” Evans said Tuesday during a moderated discussion at an Economic Club of New York event.
“That’s my expectation, when I see that, taking out special factors, I’m still left with 3 to 3.5% inflation” by the end of 2022, he said. “That’s not what we want. If we’re at a 2.5% inflation rate, I think we have more things to ponder there.”
