Fed's Evans: High prices will persist longer than I thought

Chicago Fed president Charlie Evans is speaking and says:

• High prices will persist longer than I thought
• However high prices are not persistent
• The Fed has to reposition itself in response
• By the end of the year will know a lot more about how persistent inflation is
• Hopefully inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term will be receding
• Supply pressures are more intense than expected
• At the end of the year will be able to make choices about more or less restrictiveness
• We need to position monetary policy much closer to neutral.
• The US economy has momentum
• neutral setting for monetary policy is 2.25% to 2.50%
• Had tough would be at neutral by March 2023; If got there by December, that would be ok too
• Not going too far, to quickly is important for optionality
• 50BP hike is worthy of consideration, possibly highly likely
• The real discussion is how are you want rates to be positioned by the end of the year
• I don't at the moment expect to see the need for restrictive policy to reign in inflation, but there is a risk

Most Fed officials are happy to stay behind the curve. They know rates need to be back at neutral. They know inflation is running well above the neutral rate, but the remain tied to the meetings and steady rises.