Charles Evans, president of the Federal Reserve Bank of Chicago, said on Tuesday that he was satisfied with the path of raising interest rates this year, including two increases of 50 basis points, which are expected to rise to 2.25% Mel 2.5% by the end of the year. Given the inflation outlook, the Fed is likely to raise interest rates above "neutral" levels next year.

Evans said that by the end of 2022, the United States will still face an inflation rate of 3% to 3.5%. The Chicago Fed chairman's comments highlight the need for the Fed to keep a close eye on inflation data when setting interest rates after inflation data surged to 8.5 per cent in March.

Fed officials raised the benchmark interest rate by 25 percentage points last month and have signalled that interest rates will rise at a relatively rapid rate for the rest of the year to reach a "neutral" level of 2.25-2.5%. And may have to raise interest rates further.

"by December, we will have more micro data on high inflation, rising prices and how much inflation has expanded," Evans said. "only then will we be able to judge whether inflationary pressures are easing. If the downward trend is not ideal, interest rates will definitely exceed neutrality."

However, Evans also stressed that there is no need for the Fed to raise interest rates by more than 50 basis points, supporting the Fed to raise interest rates by 225 basis points this year.

It is worth mentioning that investors are betting that Fed officials will choose to raise interest rates by 50 basis points at the upcoming policy meeting. James Brad, chairman of the St. Louis Fed, also spoke on Monday, saying the Fed should not rule out a bigger rate hike, citing the 75 basis point move proposed by former Fed chairman Alan Greenspan in 1994.