Federal Reserve Bank of Chicago President Charles Evans said on Thursday that he sees six more 25 basis point rate hikes this year.
In remarks prepared for delivery to the Detroit Regional Chamber, Evans said the US central banks needs to lift rates this year and next to counter high inflation.
“Monetary policy must shift to removing accommodation in a timely fashion,” he said, noting that the Fed’s rate hike last week was the “first of what appears to be many” this year.
Evans said labour markets were “downright tight” by some measures and rising inflation is now showing up broadly across the economy.
He said: “This is a signal of more general pressure from aggregate demand on today’s impinged supply. If monetary policy did not respond to these broader pressures, we would see higher inflation become embedded in inflation expectations, and we would have even harder work to do to rein it in.”
Evans said policymakers need to be “cautious, humble, and nimble” going forward.
“Monetary policy is not on a preset course,” he said, but will be decided at each Fed meeting, taking into account economic data and risks.