Evans: It's likely Fed funds peak will be revised 'slightly higher' in December

Note that the December meeting will be the final one for Evans before he retires.

• There's ample capacity to hike even with smaller increments
• 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 lags more than the real economy, need time to assess
• A 50 bps hike is still a very large hike
• Inflation reports are still likely to be disappointing
• If inflation isn't favorable and you still want to hike expeditiously 'you can do 50 bps repeatedly'
• It's likely Fed funds peak will be revised 'slightly higher' in December
• Fed is looking for the right level of restrictiveness

This is the first indication of how much higher the Fed is thinking about going in 2023. 'Slightly higher' might puts anything in the 4.75-5.50% range in play. The Fed funds market is at 5.10%.