MNI BRIEF: Fed's Evans Open to 2022 Hike If Inflation Lingers

Chicago Federal Reserve President Charles Evans suggested Thursday he's becoming more open to the prospect of raising interest rates next year because of creeping doubts that elevated inflation will linger.

Evans said his main forecast is for supply chains to be be fixed up next year as the job market makes gains, and that current price pressures tend to be a handful of prominent items. He also said he can't overlook recent evidence and he's become a bit nervous about sustained price gains. "As long as there continues to be uncertainty about the Covid risks, and other things, it might be a gentle increase," he said. "It could begin next year after we finish our asset purchasing program or it could be as long as in 2023."

"I would be not really doing my job well if I didn't at least, consider that circumstance, weigh it against other factors that we're looking at and recognize that we may have to lean into slightly more restrictive policies than I was expecting six months ago." MNI has previously reported the Fed's next meeting in December is expected to show a growing number of officials forecast one or more interest rate increases in 2022.