Fed's Evans sees 4 rate hikes in 2017 if inflation flares
If inflation overshoots the Federal Reserve's 2% target – even by a relatively small amount – the central bank could raise interest rates a total of four times over the course of this year, Chicago Fed President Charles Evans said on Monday.
Assuming that the expected economic improvement in the US persists, the Fed is likely to stick to the total of three rate hikes initially projected for 2017, but this target is rather "loose," the policymaker said in an interview on Fox Business. He added that the US economy is likely to grow by 2.25% this year at most, partly due to lower-than-expected gains in wage growth given tightness in hiring.
Evans is a voting member of the Federal Open Market Committee this year.