Fed's Evans says favors "much more" easing

Published October 05, 2010

NEW YORK (Reuters) – The U.S. Federal Reserve should do "much more" monetary easing to spur a sluggish economic recovery, a top Fed official said in an interview published Tuesday.

"In the last several months I’ve stared at our unemployment forecast and come to the conclusion that it’s just not coming down nearly as quickly as it should," Chicago Federal Reserve Bank President Charles Evans told the Wall Street Journal.

"This is a far grimmer forecast than we ought to have," he said, for which reason he favors "much more accommodation than we’ve put in place."

The U.S. unemployment rate in August ticked up to 9.6 percent, and government figures to be released on Friday are expected to show a further increase to 9.7 percent.

Evans, who rotates into a voting position on the Fed’s policy-setting committee next year, stands on the dovish end of the spectrum at the Fed, concerned more with high unemployment than with the threat of inflation.
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http://www.foxbusiness.com/markets/2010/10/05/feds-evans-says-favors-easing-wsj/

Here's some more interesting news about the Fed - hat tip to Guanosphere.

Deconstructing POMO As Fed Becomes The Second Largest Holder Of US Treasurys In The World

With today being yet another POMO day, it is only fitting to do the definitive summary of how the Fed's Open Markets Group distorts various asset classes with its liquidity ramps. So all those who doubt thet (sic) Fed has an impact on stocks, please look at the chart below. Incidentally, today is the day the Fed will likely overtake Japan as the second largest holder of US Treasurys.

read article here: http://www.zerohedge.com/article/decons ... urys-world