LONDON (MNI) – The most recent revisions to national income data
definitively showed that the US economy is not close to achieving a
‘launch velocity’, Chicago Fed President Charles Evans said tonight.
Speaking at an event organised by the European Economic and Finance
Centre, Evans said:
“My judgement was that the most recent data revisions to the
national income and product accounts were quite definitive in showing
that the U.S. economy was not close to achieving launch velocity for
getting growth up well above potential growth rates so that we can make
progress on the employment front,” Evans said in a question and answer
session with journalists.
Evans stressed the vital importance of ‘foreguidance’ on monetary
policy.
“Clarity on forward guidance is very important. I look forward to
further discussions of the various policy options that are available to
us,” Evans said.
Evans said that he couldn’t think of any option that “wouldn’t be
on the table for discussion” at the Fed’s next policy meeting and said
that ‘triggers’ “would be a very welcome addition” to the Fed’s “current
conditional forward guidance.”
Evans said that there was a case for being more precise on the
Fed’s current low rate pledge:
“At the moment we added mid-2013 to the statement and there’s some
conditionality associated with that. I would prefer to be extremely
clear in the conditioning to that.”
–London Bureau; Tel: +442078627492; email: ukeditorial@marketnews.com
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