Fed’s Evans: Open to four interest-rate hikes this year if inflation flares

• March 20, 2017
• realestate
• Business & Markets, Real Estate Finance

If expected U.S. economic improvement persists, the Federal Reserve is likely to raise interest rates a total of three times in 2017, said Chicago Fed President Charles Evans, but that loose target could go up to four rate hikes this year should inflation creep higher than the 2%, or even just over 2%, that the Fed desires. The economy is likely to grow at a 2.25% clip this year, limited in part because wage increases aren’t at the pace that might be expected given tightness in hiring, Evans said in an interview on Fox Business. Evans is an interest-rate policy voter in 2017. The Fed last week raised interest rates and signaled then expectations among members for two more hikes this year. He said funding conditions have been easier, including stock market gains, despite Fed moves, which is worth watching. #Fed