Fed to Keep Rates Near Zero for Some Time: Evans

Monday, 19 Apr 2010 01:38 PM


  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The high U.S. jobless rate and low inflation mean the Federal Reserve will likely keep its near-zero interest-rate policy in place for quite some time, a top Fed official said Monday.

The U.S. central bank's policy-setting Federal Open Market Committee is due next week to reconsider its pledge to keep rates low for an "extended period," a vow it has had in place since it cut its key short-term interest rate target to near zero in December 2008.

Asked how long he expects the Fed to keep that pledge in place, Chicago Fed President Charles Evans reiterated his view that policymakers will keep it for another three or four meetings, or about six months.

"It depends on the state of the economy," Evans said on the sidelines of a financial literacy event in Chicago. "If the economy were to change very, very quickly, I would be delighted, and we would respond appropriately.

But given the long period of higher-than-desired unemployment, I would expect that policy would continue to be accommodative for quite some time.

"In terms of monetary policy we are going to keep our eye on price stability," he said.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

RPT-Hedge Funds Raise Bullish Commodity Bets First Time in 5 Weeks

Sunday, 17 Mar 2013 17:13 PM

 . . .

Studies: Wind Potentially Could Power the World

Monday, 10 Sep 2012 15:51 PM

 . . .

Solar Storm Barreling toward Earth This Weekend

Friday, 13 Jul 2012 12:51 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved