Federal Reserve Bank of Chicago President Charles Evans stated on Wednesday that the terminal interest rate should be reached in March 2023. Saying that the Fed should have started raising rates earlier is "fair," he also noted during an event organized by the London School of Economics.
The central bank could have opted to start earlier by raising interest rates in small increments for a long period of time, or it could have chosen what it has ultimately done, to implement larger rates faster once inflation soared, he explained. Fed's analyses at the time showed that the outcome of the two policies would not have been "much different," Evans also revealed.
