Federal Reserve of Chicago President Charles Evans said Wednesday that the Federal Reserve of Chicago is raising interest rates expeditiously in order to address very high, persistent inflation and will likely get short-term borrowing costs to where they need to be by early next year.
On Tuesday, Benchmark U.S. 10 year Treasury yields rose to their highest level in 12 -- 1 2 years as investors girded for higher interest rates that could possibly last a long time as Federal Reserve officials held firm in their hawkish stance.
Since August 2, the 10 year yield has surged by 145 bps.
The Federal Reserve has hiked interest rates by 3 percentage points this year, taking its target range to 3.00% -- 3.25%. It had a third consecutive 75 basis point increase last week and signaled that rates are likely to rise to the 4.25% -- 4.5% range by the end of the year.