Fed’s Evans: 50 bps in Sept is a reasonable assessment, 75 is also ok

  • 50 bps is reasonable, 75 bps is ok, I doubt 100 bps is called for
  • Says he’s hopeful they can do 50 bps in Sept end then continue with 25 bps hikes until the beginning of Q2 2023
  • There’s still a reasonable expectation that tightening into next year will lead to a restrictive setting but allow for reasonably strong labor market
  • I see policy rate between 3.75-4.00% by the end of 2023
  • It’s possible we get a soft landing but there are a lot of risks
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