Fed's Evans says favors "much more" easing
Fed's Evans says favors "much more" easingPublished 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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