Mr. Evans said he expects that policy setting, together with the Fed’s continuing program of reducing its $8.8 trillion in asset holdings, will restrict economic growth and soften the labor market.

The Fed has raised the rate at its last three meetings by 0.75 percentage point, most recently last month to a range between 3% and 3.25%.

“Our rapid pace of rate increases has fast-tracked our arrival to such a restrictive stance,” said Mr. Evans before the National Association of Business Economics annual meeting in Chicago. He said the historically quick pace was warranted because interest rates had been too low, but he also signaled concern about the costs of raising rates too much.

“Overshooting is costly, too, and there is great uncertainty about how restrictive policy must actually become,” he said. “This puts a premium on the strategy of getting to a place where policy can plan to rest and evaluate data and developments.”

Mr. Evans said he had grown less optimistic about the potential for more workers to enter the labor market from the sidelines, reducing the prospect that the Fed can reduce pressure on wages without slowing demand with higher interest rates.

Mr. Evans, who is set to retire in January, was a strong advocate last year for waiting to withdraw monetary stimulus due to the view that inflation pressures would fade on their own. Most Fed officials argued for much of last year that prices were rising faster because of supply-chain bottlenecks and other shortages.

But Mr. Evans said Monday that the economy is currently experiencing a “broad-based increase in inflationary pressures that monetary policy must address.” Without higher interest rates to slow spending, hiring and investment, he said, “inflation will come down some, but not to anything near our 2% objective.”

Write to Nick Timiraos at Nick.Timiraos@wsj.com