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Chicago Fed President Charles Evans: Tight credit is keeping the reins on recovery - and the...

Chicago Fed President Charles Evans: Tight credit is keeping the reins on recovery - and the jobless rate high - but things could get surprisingly robust as some news is coming in much better than expected. Expects average GDP of 3-3.5% in 2010. Inflation isn't going through the roof or falling through the floor; monetary policy will work to keep inflation near 2% over medium term.
Comments (7)
  • tunaman4u2
    , contributor
    Comments (3118) | Send Message
     
    Then 5% over long term while wages stagnate & job creation is low
    13 Jan 2010, 01:30 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    Really, when was the last time our overlords got anything right? Meaningless babel is something they are very good at.
    13 Jan 2010, 01:40 PM Reply Like
  • GreenMom
    , contributor
    Comments (128) | Send Message
     
    Has anyone investigated WHY the CHICAGO Fed would be the one making this statement? Aren't he and BHO in the White House buddies? THIS IS SUCH A GAME!

     

    3 - 3.5% to be revised downward when it's politically convenient, and right after the PFR (Ponzi Federal Reserve) pumps the stocks up.
    13 Jan 2010, 01:55 PM Reply Like
  • reveigel@msn.com
    , contributor
    Comments (151) | Send Message
     
    It is not tight credit. It is the current administration's agenda. Wake-up people and understand the con-game that is underway and the lies being told.
    13 Jan 2010, 01:58 PM Reply Like
  • Northern Dancer
    , contributor
    Comments (737) | Send Message
     
    Mr. Evans, President of the Chicago Fed said:

     

    "So, with credit tight and households needing to repair their balance sheets, consumer spending will gain momentum only as people get back to work."

     

    And how exactly does he expect people to get back to work as long as the banks are refusing to lend to American business, allowing them to hire or perhaps even expand a little bit?

     

    Then he says this:

     

    "These tighter standards, in turn, appear to reflect banks’ concern over their capital levels and also the credit quality of borrows. More generally, credit flows are being reduced because both borrowers and lenders are still dealing with losses from the recession, especially the busts in residential and commercial real estate. I expect banking conditions to improve, but this is likely to take some time."

     

    That's a flat out admission that the banks are keeping all the liquidity the Fed provided for themselves, to strengthen their own balance sheets. He expects banking conditions to improve. Of course. Give me a billion dollars and my conditions are likely to improve too. But all that matters to him is that the conditions of the banks improves. The economy in general? A moot point in their view.

     

    So how in hell is the snippet (below) at the intro to this article accurate?

     

    "Tight credit is keeping the reins on recovery - and the jobless rate high - but things could get surprisingly robust as some news is coming in much better than expected."

     

    I call BS. How in hell are things going to become "surprisingly robust"? What's going to cause that? A burst in consumer spending by the homeless? A wave of sudden and unexpected hiring by corporations who have no reason to hire anyone? By a sudden blast of spending funds provided by a fresh wave of home equity loans? When did logic officially become banned?
    13 Jan 2010, 02:04 PM Reply Like
  • GreenMom
    , contributor
    Comments (128) | Send Message
     
    There's a Charles Evans in Chicago IL that gave $2,050 to Obama's campaign. Coincidence?

     

    fundrace.huffingtonpos...
    13 Jan 2010, 02:08 PM Reply Like
  • inthemoney
    , contributor
    Comments (981) | Send Message
     
    Honestly, does anybody at the FED has a clue or they are all mindless parrots like this one? It is scary to have the country's future at the mercy of people so out of touch with reality.
    13 Jan 2010, 02:15 PM Reply Like
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