Fed’s Evans sees slower rate hike pace, “slightly higher” peak rate

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Chicago Federal Reserve Bank President Charles Evans looks on during the Global Interdependence Center Members Delegation Event in Mexico City

By Bianca Flowers

(Reuters) – The Federal Reserve will likely need to raise borrowing costs to a “slightly higher” peak than envisioned in forecasts from September, Chicago Federal Reserve Bank President Charles Evans said on Friday.

“We probably are going to have to have a slightly higher peak rate of the funds rate, even as we likely will step down” the pace of rate hikes from the 75-basis-point-per-meeting pace of recent meetings, Evans said at an event in Chicago.

(Writing by Ann Saphir)

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