Fed’s Evans: It’s not a big risk if rate hike path includes some 50 bps hikes

Fed's Evans
  • Inflation reports should start to slow in H2
  • Raising rates to just under 2.50% by March 2023 gives Fed ‘optionality’
  • Don’t appreciate why Fed’s most recent rate-path projections have suddenly become stale
  • Latest jobs report is not indicative of overheating

Evans explained that raising rates by 50 bps puts a premium on the Fed emphasizing the ultimate top of rates and he said that will be important moving forward. Evans is generally a good barometer for the core of the FOMC.

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