Off The Wire
Fed's Evans sees 'a little bit more to go' before hitting neutral
FLINT, Mich. (Reuters) - The Federal Reserve still has a “little bit more to go” on interest-rate hikes before they reach a level where they will neither stimulate nor restrain economic growth, a U.S. central banker said on Wednesday.
The U.S. economy is doing “extremely well,” Chicago Fed President Charles Evans told more than a hundred people attending a Flint Genesee Chamber of Commerce luncheon, with GDP expected to rise 3.2 percent this year and 2.5 percent next, pushing unemployment down further, while inflation looks likely to rise only a few tenths of a percent above its current 2 percent level. Evans said he believes ‘neutral’ rates to be about 2.75 percent to 3 percent.
Reporting by Ann Saphir; Editing by Chizu Nomiyama