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Chicago Fed President Charles Evans says the Fed could end its bond-buying if the economy...

  • Monday, January 14, 4:38 AM ET
    Chicago Fed President Charles Evans says the Fed could end its bond-buying if the economy creates another 1-1.5M jobs over the next six months to a year. "That would be indicative that we could stop," says Evans. However, he forecasts that unemployment won't drop to 6.5% until mid-2015, which would mean that under the Fed's plan of linking monetary policy to the jobless and inflation rates, the bank could keep interest rates close to zero for another 2.5 years.
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This news story has 6 comments:

  •  
    He seems like one of the most dovish members as well. Also, the Fed will stop if inflation expectations rise above 2.5% regardless of the unemployment situation.
    14 Jan, 04:48 AM Reply Like
  •  
    I guess you also met Santa every XMas.
    14 Jan, 07:54 AM Reply Like
  •  
    Wow - 1.0 - 1.5 million new jobs.......that would be absolutely STUNNING (sarc) growth. Ummmmm - that's about what we are doing right now and will lead to what ------ 1% - 1.5% GDP. Gosh, let me sit down and take my heart pills. Stop the QE - I wanna get off.

    Now, what about the contractionary tax increases just implemented?
    14 Jan, 07:09 AM Reply Like
  •  
    .Last time the Fed said this rates rose till the Feds Bullard followed up saying Fed could resume asset purchases i and rates went back down.Bunch of croc. Central banks are bond vigilantes these days
    14 Jan, 07:42 AM Reply Like
  •  
    Does Evans actually have conclusive proof that QE directly creates jobs other than inflating asset and commodity prices and thereby reducing real income for the broad populace? Because if he doesn't, I wonder where he gets his enthusiasm from to continue down the inflationary path until a fairly arbitrary "unemployment" number suddenly gets beaten. I like his time estimate too. Wasn't it the Fed that hadn't even acknowledged the housing bubble even after it popped?

    They're hopelessly groping in the dark.
    14 Jan, 08:23 AM Reply Like
  •  
    You forget that to be seen as a voice of reason at the Fed all you have to say is 'Someday, we may stop printing'
    14 Jan, 10:12 AM Reply Like
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