Chicago Fed President: It's time to reduce the rate of interest rate hike, even if inflation continu

Federal Reserve Bank of Chicago President Charles Evans

Chicago Fed President Charles Evans said it is time for the US Federal Reserve to start slowing its sharpest pace in raising interest rates, even if inflation continues to exceed expectations.

"I think there are benefits from adjusting the rate of rate hikes as quickly as we can do," Evans said during an interview at the Federal Reserve in Chicago. "I hope we get to a point where inflation dynamics shift very soon toward the 2 percent target."

"If we don't start thinking about adjusting the rate of interest rate hike, given the late effect of decisions, and we continue to raise rates by significant rates every time a disappointing report comes out, we will reach very high levels," he added, according to Bloomberg.

Evans, who will retire in January, after 15 years at the Federal Reserve Bank of Chicago, has been described for most of his tenure as among the most cautious policymakers at the US central bank.