"The U.S. economy seems to be performing quite well"
- Federal Reserve Bank of Chicago President Charles Evans
Despite the fact the U.S. economy has improved significantly since the Federal Reserve introduced its record stimulus, there are no signs the Fed should turn off its monetary stimulus anytime soon, the Federal Reserve Bank of Chicago President Charles Evans said. According to his estimates, there will be a self-sustaining growth in the world's largest economy only by 2014, while he expressed concerns that current signs are pointing to an economy that has fully picked up. As to consumer prices, which are currently around 1% level, Evans suggested they should move closer to the Fed's 2% target soon. Moreover, more time is needed to make conclusions whether the labour market is stabilizing, as Evans thinks monthly employment should reach 200,000 or more for at least six months before judging the labour market substantially improved.
"The U.S. economy seems to be performing quite well," Mr. Evans in a speech in Chicago Monday morning. Nevertheless, he said he is still "nervous" because has seen episodes of temporary recovery quickly change to downturns.
"So far it's very difficult to argue that things are not functioning at least as well as they were before we undertook our asset purchasing programs," Evans said. "And while asset values have gone up, it still looks relatively reasonable."
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