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Fed: I’d rather raise rates and hold them for a while than raise them too much — Charles Evans

The president of the Federal Reserve Bank of Chicago, Charles Evans, He said policymakers could carry out a third consecutive rate hike when they meet on September 20-21, but was open between a 50- or 75-bp hike.

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“I am open to a rate hike of 50 or 75 basis points in September.”

“I will watch the breadth of inflation and if there are any surprises in wages, it may be necessary to hit a ceiling sooner.”

Signs of cooling inflation will not change the need to hit the top 4% federal funds rate, but perhaps not so soon.”

“I have no ‘difficulty’ reaching the maximum of 3.75%-4% of federal funds at the end of the year or in January.”

“The strength of the dollar shows confidence that we will bring inflation down again.”

“We’re hoping that unemployment won’t do all the work to bring down inflation; there will be special factors, supply chains.”

“We need to trust that inflation will come back down to our 2% target.”

“I would rather raise rates and hold them for some time, rather than raise them too high and then have to cut them.”

Source: Fx Street

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