Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fed’s Evans Says Low Rates Should Have Created Refinancing Boom

June 11 (Bloomberg) -- Federal Reserve Bank of Chicago President Charles Evans said the Fed policy of holding interest rates close to zero should have prompted a boom in mortgage refinancing in a “moribund” U.S. housing market.

“Accommodative monetary policy is healthy, yet there are a lot of challenges,” Evans said today in a speech in Chicago. “The housing market looks relatively moribund,” and “we should have seen an enormous refinancing wave” from low interest rates.

Evans, one of the Fed’s most vocal advocates for more easing, reiterated his view that the central bank should say it won’t raise interest rates until either unemployment falls below 7 percent or inflation increases above 3 percent over “the medium term.” The Federal Open Market Committee plans to meet June 19-20.

To contact the reporters on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz in Washington at cwellisz@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.