Fed's Evans Says He Isn't Ready to Call for Changes in Central-Bank Monetary Policy
By Michael S. Derby
Federal Reserve Bank of Chicago President Charles Evans said
that although the latest data on the labor market is disappointing,
he wasn't yet ready to call for changes in central-bank monetary
The official repeated on Friday that government aid is the
quickest way to deliver new support to the U.S. economy.
The November data, which showed moderating levels of job
creation, was "weaker than I was expecting," Mr. Evans told
reporters after remarks to a Michigan banking group.
"I don't believe it's changed my assessment that the most
important source of stimulus for the economy over the next few
months is some type of fiscal support and increase in public health
safety support," Mr. Evans said. "I think that that would be
quicker. I think that that's most relevant at the moment" compared
with actions the Federal Reserve could take.
Fed officials have broadly called for another round of
government aid as the coronavirus pandemic ranges on, amid surging
infections, but so far elected officials have failed to deliver
That has raised questions whether the Fed will have to do more
to help the economy. With rates at zero and unable to be lowered
further, that has led many to look to the Fed's already massive
bond-buying effort as a place where the central bank could act.
Mr. Evans, who doesn't have a voting role on the rate-setting
Federal Open Market Committee, said he isn't yet ready to make
changes in what is a highly uncertain time.
"I am comfortable with our current setting for asset purchases,
and I would be comfortable with that, presumably, for the next
several months until we get to more clarity on what the economic
situation is going to be, I think in the spring," Mr. Evans said.
"I'm not opposed to more accommodation. I'm just not exactly sure
what the right timing is."
Write to Michael S. Derby at firstname.lastname@example.org
(END) Dow Jones Newswires
December 04, 2020 12:02 ET (17:02 GMT)
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