Chicago Fed President Charles Evans said yesterday, “inflation is just much too high, and so we need to continue on the path that we’ve been indicating — at least that. And I’m hopeful that that will be enough.”
“Continued increases in the funds rate along the lines of our September SEP (Summary of Economic Projections) could lead to a economic outlook where we’re going to see below-trend growth — we’ll be challenged in that regard — we’ll see the unemployment rate go up, but I think that it won’t take off,” Evans said.
“I think if we have to increase the path of the funds rate much more, though, it really does begin to weigh on the economy. I worry that it’s sort of a nonlinear kind of event.”