Chicago Federal Reserve Bank President Charles Evans on Thursday said the U.S. central bank has further to go on interest rate hikes with the policy rate, now at 3%-3.25%, likely headed to 4.5%-4.75% by the spring of 2023.

At the Fed's next meeting, policymakers will consider whether to raise rates again by 75 basis points or downshift to 50 basis points, Evans said at an annual meeting of the Illinois Chamber in Chicago, adding policymakers expect to deliver 125 basis points of rate hikes over the next two meetings and inflation readings have been disappointing.

"Inflation is high right now and we need a more restrictive setting of monetary policy," Evans said.