Fed Evans "Concerns Over Rapid Hikes... US Recession Likely Avoidable"

[Asia Economy New York=Special Correspondent Joselgina] A senior official of the U.S. Federal Reserve (Fed) expressed caution against raising interest rates too quickly. However, a cautious optimism was also presented, suggesting that a recession could be avoided if there are no additional external shocks.

Charles Evans, President of the Chicago Federal Reserve Bank, said in an interview with CNBC Squawk Box Europe on the 27th (local time) that there is a fear among investors that the Fed does not wait long enough to properly assess the impact of rate hikes, and he stated, "I am somewhat concerned precisely about that point."

President Evans said, "We have moved quickly. We decided on three consecutive 0.75 percentage point increases, and it is said that 4.25-4.5% is possible by the end of the year," adding, "There will not be much time to review on a monthly basis."

He also expressed optimism that the U.S. economy could avoid a recession if there are no further external shocks. These remarks attracted attention as they came after the Fed clearly conveyed the message that it is willing to endure pain, including economic slowdown, to reduce inflation.

Meanwhile, President Evans stated at an event held in London that his interest rate forecast aligns with the Fed's median projection. The previously released median rate is 4.4% by the end of this year and 4.6% by the end of next year. To achieve this, an additional 1.25 percentage point increase is needed in the remaining two meetings this year. He described the stance as "sufficiently restrictive."

This content was produced with the assistance of AI translation services.