10/12, 5:33 PM (Source:
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Fed's Evans praises US economic strength

Charles Evans, head of the Federal Reserve's subsidiary in Chicago, denied on Friday in Michigan that the central bank has a plan for unwinding its bloated balance sheet past the current scheme. Policymakers have for the last year been increasing the monthly amount of proceeds from bonds that they don't reinvest, reaching a maximum runoff of $50 billion this month. Evans today highlighted the "fundamentals" of the United States economy, claiming they are strong.

Earlier he stated that interest rates should be gradually driven at least to a neutral rate, which would end stimulus, or that the Fed should even act "slightly restrictively... for quite some time." The central banker, a nonvoter this year at the Federal Open Market Committee, estimated the range was from 2.75% to 3%, compared to the current benchmark at between 2% and 2.25%. He added restrictiveness would set in half a point above that.

Breaking the News / IT