Fed expected to raise fed funds rate target to between 3.25%-3.5% by end of 2022-Evans


Fed expected to raise fed funds rate target to between 3.25%-3.5% by end of 2022-Evans |  Photo credit: Reuters

Fed expected to raise fed funds rate target to between 3.25%-3.5% by end of 2022-Evans | Photo credit: Reuters

Aug 10 (Reuters) – Stagnant consumer prices in July are the first “positive” inflation statistic since the Federal Reserve began tightening monetary policy, the Chicago Fed Chairman said on Wednesday. Charles Evans.

The consumer price index remained stable last month, announced the Labor Department, while the Reuters consensus gave it up 0.2% after +1.3% in June. Over one year, it posted an increase of 8.5%, against +9.1% the previous month and +8.7% for the consensus.

While the data reflects a lull in price increases hailed by financial markets, inflation remains at an “unacceptable” level, Charles Evans said at an event at Drake University in Iowa.

The Fed will need to continue raising rates to bring the federal funds rate target to a range of 3.25-3.5% by year-end and 3.75 % to 4% by the end of 2023, he added. (Report Ann Saphir, French version Laetitia Volga, edited by Camille Raynaud)





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