(Finance) – I inflation data published today are there first “positive” reading ever since the Federal Reserve began tightening monetary policy. This is what the president of the Chicago Fed pointed out Charles Evansaccording to which the US central bank still has a lot of work to do.
The banker defined the 8.5% inflation rate still “unacceptably” high and indicated that the Fed will still have to raise interest rates to the 3.25% -3.5% for the end of this year and from 3.75% -4% within end of 2023.
US interest rates are currently at 2.25% -2.50% and therefore this would imply that the Fed may slow the pace of interest rate hikes this yearmissing just 1% of the target for the end of 2022, but at the same time it could prove to be more aggressive next yearwhen rates rose to 4% against the 3.75% expected by analysts.
“I feel we are in one good location and we can orient ourselves to be more restrictive if inflation gets out of hand “Evans said at an event in Iowa, adding” if things improve faster, you won’t be able to raise rates that much. “