This just broke on Marketwatch
Fed should not take foot off gas: Evans
WASHINGTON (MarketWatch) — The Federal Reserve should take more steps to boost demand, the president of the Chicago Federal Reserve Bank said on Thursday as he continued his campaign for looser policy.
In an interview with reporters at his headquarters in downtown Chicago, Charles Evans said his preferred next easing step would be for the Fed to keep rates at low levels until unemployment falls below 7% or inflation reaches 3% over the medium term. He called this “enhanced forward guidance.” [I call this total Bullshit!]
If his colleagues on the Fed do not want to take this step, then Evans said he would back another round of asset purchases, or quantitative easing.
“In the absence of an ability to get to an agreement on enhanced forward guidance, I think there is a good case for asset purchases,” Evans said.
“More purchases of MBS [mortgage-backed securities] could be helpful,” Evans said. The Fed could also purchase Treasurys, but would need to keep an eye on disrupting markets. [not disrupting, but bumping it up, constantly!]
“I would be aggressive,” he said, noting that some private forecasters have suggested well over $1 trillion of asset purchases would be needed to get the economy on a sustainable path.
“The normal channels of monetary policy are clogged at the moment,” he said. [What we really need is the giant toilet plunger of all time, to spew money wildly out of the toilet, because with what they're doing to the currency, there isn't much difference between paper money and shit.]
