“Clearly, more accommodation would be appropriate,” Evans said in the text of speech today in Washington. “At 8.3 percent, the unemployment rate is substantially above reasonable measures of the natural rate.”
Evans repeated his call for the central bank to make more explicit its pledge to hold down the benchmark interest rate. In a paper released today, Evans and Chicago Fed economists said the central bank may be able to limit inflation as economic growth picks up by clarifying the changes that will prompt it to raise the main interest rate.
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