Chicago Fed's Evans: No Reason to Tighten Now

Tuesday, March 23, 2010 , , 2 Comments

and no, it's not innuendo, that's actual dirty money

The complacency is mind-numbing.


Unacceptably high unemployment and well-contained inflation make it likely that U.S. monetary policy will remain accommodative for at least several months more, a top U.S. Federal Reserve official said on Tuesday.

Speaking to reporters in Shanghai, Chicago Federal Reserve Bank President Charles Evans said he strongly supported maintaining the current loose monetary stance as long as inflation remained under control.

"I'm hopeful that businesses will be surprised by the strength of demand over the next year and that they will actually begin to add workers, but it is quite a cautionary prospect for the U.S. and that leads me to think that monetary policy is likely to continue to be accommodative for an extended period of time," Evans said.

Speaking of inflation, it's funny that the AP actually had the balls to say there's no way investing your tax refund in "inflation-protected" I-bonds is a bad idea. I invite every person who touts those filthy things to invest their entire portfolios in them. And don't forget to jack down your exemptions so you get a bigger refund and therefore have even more to invest in them next tax year!

What, me worry?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

Today I had an epiphany. Our monetary policy is the equivalent of the old joke, "The US doesn't have to be able to outrun the bear (market), we just have to be able to outrun you (EU!)." The shining city may be dead and gone, but we suck less than most!

Anonymous said...

"The shining city may be dead and gone, but we suck less than most!"

In the land of blind, the man with one working eye is King.

If Mish's column is to be believed, deflation in several portions of the economy has set in and we do have double digit unemployment in many areas of the country. Given that the Fed's mission is price STABILITY and low unemployment, couldn't it be argued that they are failing in their stated mission?

Prices over the past several years for many things necessary for daily modern life have been anything but stable.