Fed Governor Charles Evans just re-emphasized the TO INFINITY….AND BEYOND!!! reality of QE∞, stating in a speech in Ann Arbor, MI this morning that the Fed will continue to purchase assets until there was significant improvement in the labor market.
Evans also stated that the Fed is not out of options and could do more asset purchases, and the Fed is willing to tolerate inflation above 2%!!
Gold and silver apparently received the message by spiking vertically, (although they have since been smashed down to pre-pop levels)
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…
Evans 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 until mid-2015 even after the economy strengthens should reassure investors and businesses that the Fed will not tighten prematurely, he added.
Asked if the Fed was out of ammunition, Evans said the Fed was not out of options, summing them up as “continued asset purchases and better communication.”
Evans said the Fed could do more to explain that it would tolerate inflation a few-tenths above the 2% goal because it would help bring down the unemployment rate.