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21 Oct 2013
Fed's Evans says tapering could be delayed for a few months
FXstreet.com (Barcelona) - Chicago Fed chief Charles Evans said on Monday that the Federal Reserve might want to wait for a few more months before it starts withdrawing stimulus, due to the damage caused to the economy by the prolonged US government shutdown.
"I think we need a couple of good labor reports and evidence of increasing growth, GDP growth. It's probably going to take a few months to sort that out," Evans told CNBC in an interview. He suggested that it was necessary to see employment numbers rise up to 200K, before tapering could begin.
The dovish Fed head stated however that he did not consider financial stability threatened at the moment. He suggested that there were no evident risks to inflation, which would allow the US economy to expand freely as soon as it picked up steam.
"I think we need a couple of good labor reports and evidence of increasing growth, GDP growth. It's probably going to take a few months to sort that out," Evans told CNBC in an interview. He suggested that it was necessary to see employment numbers rise up to 200K, before tapering could begin.
The dovish Fed head stated however that he did not consider financial stability threatened at the moment. He suggested that there were no evident risks to inflation, which would allow the US economy to expand freely as soon as it picked up steam.