(Reuters) – Chicago Federal Reserve Bank President Charles Evans on Friday repeated his view that the U.S. central bank should get policy to “a bit above” 4.5% by early next yr after which hold it there in order to restrain growth and convey down too-high inflation.
“Front-loading was an excellent thing, given how far below neutral rates were” as recently as March, after they were near zero, Evans told the regional Fed bank’s Community Bankers Symposium earlier Friday. “But overshooting is dear, too, and there’s great uncertainty about how restrictive policy must actually turn out to be, so that is going to place a premium on the strategy of attending to a spot and a level where policy can plan to rest and evaluate data and developments.”
The remarks were shortened version of comparable comments given two weeks ago; the bank posted a video of Evans’ presentation on its website.
(Reporting by Ann Saphir; editing by Diane Craft)
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