Fed's Evans: 'This was the time to act' (by Greg Robb)
WASHINGTON (MarketWatch) -- The Federal Reserve needed to launch another round of asset purchases given the problems facing the economy and the potential dangers lying ahead, said Charles Evans, the president of the Chicago Federal Reserve Bank on Tuesday. "It is essential to do as much as we can now to bolster the resiliency and vibrancy of the economy," Evans said in a speech to a business group in Ann Arbor, Mich. The economy faces some "big risks" from the global slowdown and the U.S. fiscal policy stalemate, he said. Evans has been a strong proponent of additional Fed easing, and wanted the Fed to say it wouldn't stop easing until the unemployment rate fell below 7%. While the Fed stopped short of setting any specific target, Evans said he supported the Fed action "wholeheartedly." He argued that the Fed has taken "a strong step towards economic conditionality" by saying it would continue to purchase assets until there was significant improvement in the labor market. And the central bank language that it would keep rates near zero even after the economy strengthens should reassure investors and businesses that the Fed will not tighten prematurely, he added.