Chicago Fed's Charles Evans sees a "liquidity trap" that is causing the supply of savings to...

|By:, SA News Editor

Chicago Fed's Charles Evans sees a "liquidity trap" that is causing the supply of savings to exceed the demand for investment even at very low interest rates, arguing again for rates to be tied to improvement in unemployment unless inflation rises above 3%. "There is simply too much at stake for us to be excessively complacent while the economy is in such dire shape," he says.