Chicago Fed President Charles Evans said it was the Fed’s “first duty” to bring down hyperinflation.
Evans said at an economic forum he attended, “We don’t necessarily want to limit the economy. But we are worried about the high inflation environment. I think we will achieve growth in the US economy this year. Growth will likely be half a percent this year, and the unemployment rate will rise, but not by much.”
Stating that he has not yet formed his opinion on the decision he will make at the FOMC meeting to be held on September 20-21, Evans said, “However, what is clear is that the interest rate, which is currently in the range of 2.25-2.50 percent, will be in the range of 3.25-3.50 percent this year and next year. It should rise to 4.0 percent.”
Stating that the unemployment rate, which is currently 3.7 percent, will also increase, Evans, emphasized that this rate will not rise above the 4.5 percent level and can be expected to be lower.
