MNI: Fed May Hike In March, Add Three More This Year- Evans

Chicago Federal Reserve President Charles Evans on Thursday said interest rates could rise as soon as March to keep inflation in check, and perhaps three more times later this year.

“The SEP in December had a median of three rate increases, you know, that’s probably a good opening bid for this year depending on how the data roll out; it could be four if the data don’t improve quickly enough on inflation," Evans said on a media call. Asked about a March rate increase he said “I expect that March will be a real meeting where we think seriously about taking that action.”

Evans also said the Fed's balance sheet likely needs to be slimmed down faster than in past cycles, but declined to give a specific timetable.

Inflation has climbed to the fastest in decades and business groups have told MNI those pressures will persist. Evans said that while inflation could slow later this year it's “much too high" and "we definitely have to be making adjustments to our stance of monetary policy” to bring it back to neutral over time.