Fed official expects 2.5% policy rate by year end

ANKARA

Due to record high inflation, the US Fed’s policy rate should be in the target range of 2.25%-2.5% by the end of this year, according to the head of the Chicago Federal Reserve Bank.

"If we get to 2.25% to 2.5% rates by December, we will be able to look at where inflation is," Charles Evans said Tuesday in a speech at the Economic Club of New York.

Evans said the Fed could raise interest rates by 50 basis points a few times during the year, adding that hikes of more than that would not be necessary.

On March 16 the Fed started its monetary tightening with a 25-basis point increase to 0.25%-0.5%, and a 50-point hike is expected on May 4.

Annual consumer inflation in the US soared to 8.5% in March, the highest rate since December 1981.

Producer prices jumped 11.2% in March from the same month last year, its highest annual gain since November 2010.

ANKARA

Due to record high inflation, the US Fed’s policy rate should be in the target range of 2.25%-2.5% by the end of this year, according to the head of the Chicago Federal Reserve Bank.

"If we get to 2.25% to 2.5% rates by December, we will be able to look at where inflation is," Charles Evans said Tuesday in a speech at the Economic Club of New York.

Evans said the Fed could raise interest rates by 50 basis points a few times during the year, adding that hikes of more than that would not be necessary.

On March 16 the Fed started its monetary tightening with a 25-basis point increase to 0.25%-0.5%, and a 50-point hike is expected on May 4.

Annual consumer inflation in the US soared to 8.5% in March, the highest rate since December 1981.

Producer prices jumped 11.2% in March from the same month last year, its highest annual gain since November 2010.