Addressing the Official Monetary and Financial Institutions Forum (OMFIF) in London, President of the Federal Reserve Bank in Chicago Charles Evans said on Tuesday that the Fed will likely raise interest rates by another 100 to 125 basis points this calendar year, adding his projections for the interest rates are roughly in line with the median assessment of rates in the United States.
In addition, he remarked that he expects ''modest increases in GDP over the second half of the year.'' At the same time, he reiterated the importance of ''bringing supply and demand conditions in the labor market into better balance over time'' so as to tackle inflation.
Evans further concluded that ''after ending this year at 5.4 percent, total PCE inflation is expected to fall to 2.8 percent in 2023 and 2.3 percent in 2024 before returning to our 2 percent target by the end of 2025.''
