October 10, 2018 / 5:18 PM / 9 months ago

Fed's Evans sees 'a little bit more to go' before hitting neutral

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/File Photo

FLINT, Mich. (Reuters) - The Federal Reserve still has a “little bit more to go” on interest-rate hikes before they reach a level where they will neither stimulate nor restrain economic growth, a U.S. central banker said on Wednesday.

The U.S. economy is doing “extremely well,” Chicago Fed President Charles Evans told more than a hundred people attending a Flint Genesee Chamber of Commerce luncheon, with GDP expected to rise 3.2 percent this year and 2.5 percent next, pushing unemployment down further, while inflation looks likely to rise only a few tenths of a percent above its current 2 percent level. Evans said he believes ‘neutral’ rates to be about 2.75 percent to 3 percent.

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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