With characteristic vigor, Federal Reserve Bank of Chicago President Charles Evans had a message today for skeptics of the central bank’s unprecedented stimulus measures known as quantitative easing.
From auto loans to mortgages and employment, all signs are pointing to the fact that the Fed’s bond buying is working, he said.
“I find it very comforting that the programs we’ve put in place have been showing the more standard transmission mechanism,” Evans told Michael McKee in a Bloomberg Television interview today. “I don’t think it would be appropriate to say: `We haven’t done exactly this before, maybe we shouldn’t do it.”’
The Chicago official, who dissented twice in 2011 in favor of more stimulus, was cautioning against the restraint that some of his colleagues have urged. Even with uncertainties, Fed officials need to “try as hard as we can” to bring unemployment down, he said.
“Is it unusual?” he said. “Yes, but we’re not in a business-as-usual monetary policy situation. The unemployment rate is extremely high still and inflation is low.”