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Fed's Evans sees funds rate inching up over next years

Fed's Evans sees funds rate inching up over next years
FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans visits the online music retailer Sweetwater, in Fort Wayne, Indiana, U.S. September 14 2018. REUTERS/Ann Saphir -
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ANN SAPHIR(Reuters)
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FRANKFURT (Reuters) – Chicago Federal Reserve Bank President Charles Evans said on Tuesday he expected the Fed funds rate to increase slightly over the next few years as the U.S. economy grows and inflation accelerates.

“Given the current setting of the Funds Rate, I think that alone, with no further rate cuts, inflation would increase above 2% – I’ve got it rising to 2.2% by 2021 – and the economy (continue) to perform at trend-growth level,” Evans told reporters in Frankfurt, Germany.

“In that environment I have the Federal Funds Rate inching up a little bit through the end of our forecast period,” adding this would be “just a little bit below what I think is the neutral Federal Funds Rate”.

(Reporting By Francesco Canepa; editing by John Stonestreet)

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