Fed's Evans In Favor of Strong Accommodation
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The QE3 camp got a boost today after dovish comments from Chicago Federal Reserve President Charles Evans on CNBC Tuesday morning.
Evans said he favors "strong accommodation." He was also supportive of QE2, saying the economy would have been worse off without it. In addition, he said the rise in commodity prices was not related to Fed policy.
"Given the way the economy is growing and inflationary pressures are not nearly as strong as a lot of people think, I think that there's room for accommodation," Evans said."
Comments from Evans suggests that there is a growing consensus on the FOMC, led by Chairman Ben Bernanke, that is strongly dovish and in favor of more monetary easing.
Gold lifted in response to the comments from Evans. Gold for October last traded up $36.10 to $1827.70.
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Evans said he favors "strong accommodation." He was also supportive of QE2, saying the economy would have been worse off without it. In addition, he said the rise in commodity prices was not related to Fed policy.
"Given the way the economy is growing and inflationary pressures are not nearly as strong as a lot of people think, I think that there's room for accommodation," Evans said."
Comments from Evans suggests that there is a growing consensus on the FOMC, led by Chairman Ben Bernanke, that is strongly dovish and in favor of more monetary easing.
Gold lifted in response to the comments from Evans. Gold for October last traded up $36.10 to $1827.70.
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