I am just so agitated by the lack of any sensibility by some of the Fed speakers. It is one thing to discuss the potential for stimulus, but another to seek an open-ended bond buying program (QE) that has not shown to have be able to bring down the unemployment rate in the past.
But, here it is…Reckless it is!
Aug. 27 (Bloomberg) — Federal Reserve Bank of Chicago President Charles Evans in a speech in Hong Kong urged the central bank to begin a third round of bond purchases and to persist with the buying until U.S. unemployment declines for at least six months.
- “These could be open-ended purchases, meaning that they would continue at a certain rate until there was clean evidence of improvement in economic conditions,” Evans said today in a speech in Hong Kong.
- “To me, one example of clear evidence would be a resumption of relatively steady monthly declines in unemployment for two or three quarters”
- Fed should consider buying mortgage-backed debt
- Says U.S, economy “not much above stall speed”
- Fed should tie policy to unemployment, inflation levels