More from Fed's Evans - short-term neutral rate may be higher than long-run rate

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More from Fed's Evans - short-term neutral rate may be higher than long-run rate

Federal Reserve Bank of Chicago President Charles Evans spoke earlier on current economic conditions & monetary policy before the Money Marketeers of New York University, in New York:       Fed's Evans calls to raise interest rates to 2.25% - 2.5% quickly   Q&A now:                     I believe inflation will be 3% or less by 2023     underlying inflation         is currently around 4% to 4.5%     the short-term         neutral rate may be greater than the long-run neutral rateif inflation is not responding to tighter policy to the degree needed then "we are going to continue working on it"my colleagues and I have been pretty clear when we have said we are going to move the Fed Funds rate towards neutral in an expeditious fashionI think the front loading is pretty much in processAs long as inflation looks like its high and its trajectory is high the FOMC is going to say policy is not restrictive and will keep goingits time to adjust our balance sheer back to a more normal settingI wouldn't say that involves a full round trip in its size                      more to come

Source: More from Fed's Evans - short-term neutral rate may be higher than long-run rate

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