Economics
Fed Dove Evans Veers in Hawkish Direction Over Rate Outlook
- Says higher rates may be needed to restrict economic growth
- Chicago Fed chief sees fiscal stimulus reducing unemployment
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The Federal Reserve may need to raise interest rates to “somewhat restrictive” levels to combat the effects of recent fiscal stimulus on the U.S. economy, said Chicago Fed President Charles Evans in hawkish comments from one of the central bank’s most reliable doves.
“If inflation continues to be on the order of 2, 2.2 (percent) -- I’m not expecting it to get as high as 2.5 -- that suggests only a modest amount of restrictiveness above our neutral rate might be called for in 2020,” Evans told reporters Thursday in Chicago.