Bloomberg News

Fed’s Evans Says Economy Needs More Stimulus to Ease ‘Pain’

November 15, 2011

Nov. 15 (Bloomberg) -- Federal Reserve Bank of Chicago President Charles Evans said the U.S. economy needs more stimulus to ease the “pain” of high unemployment.

“The economy needs more accommodation,” Evans said today in an interview on CNBC, adding he sees a “tremendous amount of pain everywhere” in the U.S. from high joblessness.

“The amount of resource slack that is apparent to me in the economy is very large,” he said.

The U.S. economy will probably expand 2.5 percent in 2012, Evans said. Even 3 percent growth is not enough to make “substantial progress in the labor market and everything else,” he said.

There are a lot of “impediments” to economic growth, he said, citing a “clogged up” mortgage market.

“I am at the point where the normal flow of monthly data is not instrumental in my views on the economy,” he said.

--Editors: James L Tyson, Carlos Torres

To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net


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