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CHICAGO (Reuters) -There is a strong consensus at the U.S. Federal Reserve to raise the target policy rate to around 4.5% by March and hold it there while the Chicago Fed President Charles Evans said he didn't think the central bank needed to put in place 'extra' restrictive policy to bring down inflation. There is a strong consensus at the U.S. Federal Reserve to raise the target policy rate to around 4.5% by March and hold it there while the central bank evaluates the Charles Evans, the former Chicago Fed president, said Monday that he thinks it is possible that the U.S. central bank could cut interest rates in September. If the data

Chicago Fed President Evans: Path to Lower Inflation Without Recession?

Is it possible to tame inflation without triggering a recession? Former Chicago Fed President Charles Evans believes it is, offering a cautiously optimistic outlook on the U.S. economy.

According to recent reports, including a Reuters article, there is a strong consensus at the U.S. Federal Reserve to raise the target policy rate to around 4.5% by March and hold it there while the central bank evaluates the impact of these measures.

Evans\' Perspective: Avoiding \'Extra\' Restrictive Policy

Evans has consistently voiced his concern about over-tightening. He previously said he didn\'t think the central bank needed to put in place \'extra\' restrictive policy to bring down inflation, emphasizing the need for a balanced approach.

CHICAGO (Reuters) -There is a strong consensus at the U.S. Federal Reserve to raise the target policy rate to around 4.5% by March and hold it there while the Chicago Fed President Charles Evans said he didn\'t think the central bank needed to put in place \'extra\' restrictive policy to bring down inflation.

Potential Interest Rate Cuts in September?

Adding to the intriguing outlook, Charles Evans, the former Chicago Fed president, said Monday that he thinks it is possible that the U.S. central bank could cut interest rates in September. If the data supports such a move, it could signal a successful navigation of the inflationary period without significant economic downturn.

However, Evans\' optimism is contingent on incoming economic data. The Fed\'s decisions will ultimately hinge on whether inflation continues to cool and whether the labor market remains resilient. He is not on the Chicago Fed\'s board anymore.

Key Takeaways:

  • Former Chicago Fed President Evans believes inflation can be lowered without a recession.
  • The Fed is expected to raise interest rates to around 4.5% by March.
  • Evans suggests potential for interest rate cuts as early as September, contingent on economic data.

The path forward remains uncertain, but Evans\' perspective offers a potential roadmap for achieving price stability while minimizing the risk of a recession. Staying informed about the latest economic data and Fed policy decisions will be crucial in the months ahead.

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