Chicago Fed President Evans said he thought "the first step" would be taken to raise interest rates in 2023.

"things were better in June than in March, so we slightly advanced the expected date of the first rate hike, but I still think 2024 will be more appropriate," he told reporters by phone. We have advanced the interest rate hike to 2023, but I think it will only be raised once that year, and then it will be very moderate.

Due to the impact of supply, inflation in 2022 "may be higher than I expected in June," he said.

Mr Evans said that affected by the Delta virus, "I expect the economy to remain strong" and that the unemployment rate "will be slightly below 5 per cent by the end of the year, not as low as expected in June".

Evans's forecast for inflation in 2024 is as high as 2.4%.

"A brief rise in inflation of about 2.3 per cent to 2.4 per cent helps to boost inflation expectations," he said.