Charles Evans, the Chicago Federal Reserve president who last week made some noises suggesting that the Federal Reserve should print more money to buy long-term bonds and stimulate the economy, today went into a little more detail in an interview with The Wall Street Journal.
His economic outlook is not favorable. He says that unemployment is high, and inflation is low, so “To me that means we need an accommodative stance of monetary policy.” He also dismissed concerns that gold prices continue to rise unabated (the cranky bloggers at Zero Hedge point out that as the story crossed the wires, spot gold hit a new high above $1340 an ounce).
As Calculated Risk says, although Evans isn’t a voting member on the Federal Open Market Committee, which determines monetary policy, his statements today foreshadow a nasty economic outlook by the Fed going foreward. Fed officials certainly have seemed willing in recent days to speak increasingly candidly about the need for additional intervention.