Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Fed Headed for 4.5%-4.75% Interest Rate by Early 2023, Evans Says

Economy Oct 06, 2022 02:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. Charles Evans, president of the Federal Reserve Bank of Chicago, speaks during the Global Interdependence Center (GIC) Central Banking Conference in Mexico City, Mexico, on Thursday, Feb. 27, 2020. Mexico's central bank slashed its growth forecast for this year and said it will take longer than expected for inflation to slow to target, suggesting policy makers have limited room to lower borrowing costs to stimulate the economy.

(Bloomberg) -- The Federal Reserve’s benchmark interest rate will probably be at 4.5% to 4.75% by next spring as central bank officials worry about high core inflation, Chicago Fed President Charles Evans said.

“We have to look at the momentum in sort of that central component of inflation, and that’s really the part that I believe has most of my colleagues and myself nervous,” Evans said Thursday at a meeting of the Illinois Chamber of Commerce. “We look to me, according to our reports, headed for 4.5% to 4.75% by sometime next year -- which, given how fast we’ve been raising interest rates, is likely to be the springtime.”

A pickup in so-called core inflation in August, which excludes food and energy prices, has become a cause for concern among Fed officials after the figure was trending down in recent months.

The Fed raised its benchmark rate by three-quarters of a percentage point at its last policy meeting in September for a third time in a row, bringing it to 3% to 3.25%, and officials signaled they would probably increase it by another 1.25 percentage points over the final two meetings of the year.

The next gathering is Nov. 1-2. A Labor Department report on September employment and wages due out Friday, as well as a data on last month’s consumer prices to be published Oct. 13, will be critical inputs to the November rate decision.

©2022 Bloomberg L.P.

Fed Headed for 4.5%-4.75% Interest Rate by Early 2023, Evans Says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
jason xx
jason xx Oct 06, 2022 3:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We know how reliable fed predictions are
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email