According to the President of the US Federal Reserve Bank, the US economy is going to emerge with escape velocity out of all the odds and problems next year. Moreover, all this would be made possible only if the Fed. Reserve sticks to its present monetary policies which are indeed going well. In his view, the policies are indeed super easy and are also going to guarantee the betterment of all the business sectors in the country. He also added that cutting back very early is going to be costly for the economy of the country.
The Fed is currently buying $ 85 billion in treasuries and mortgage bonds on a monthly basis and will continue on the road until an improvement would be seen in the entire labor market outlooks. Charles Evans also told the reporters that were not nearing the end of the program, as it is turning out to perform very well. Furthermore, the people of the United States would need to wait for some more time in order to see the improvement in the job sectors. Until then, the Fed is not going to stop the purchases of the bonds. He continued by saying that it is going to take some more years to reach the level where unemployment would have reduced to a greater extent and the Fedis going to think on halting the bond purchases.
Evans is indeed quite optimistic about the current policies, all of which have been designed to push the economy to the previous limits of glory. At the same time, he has also acknowledged the various threats that might lead to the downside movement of the economy and business dealings. He also asserted that we should not commit the same mistake like the Japanese who tried to undermine and under calculate their strategies and policies. Moreover, if the Fed is going to think on increasing the rates back again, then the result would be the slowed growth of the economy, which is indeed not desirable by the people of the United States as well as by the investors from all over the world. In lines to the statements of Evans, all other top fed officials including Ben Bernanke are also looking to continue using the easy policies, all of which have been designed to lower the pressures on the economy and for reducing the jobless rates. Apart from the optimistic claims, it is evident that the fed policies are satisfactory.
