- Chicago Federal Reserve Bank President Charles Evans said on Tuesday he favored strong central bank accommodation for a substantial period of time, as the U.S. economy looks to be moving "sideways."
- Evans told CNBC he favored some of the most aggressive policy actions on the table now being considered to boost the economic recovery, and said that the U.S. Federal Reserve needed to clarify its policy intentions.
- "It's difficult to characterize the labor market as anything other than consistent with being in a recession," said Evans, adding the economy is "really going sideways more than anything else.
- "I'm in favor of some of the most aggressive policy actions of anyone on the Committee," added Evans, a noted policy dove who votes on the Fed's policy-setting Federal Open Market Committee this year.
- In his view, QE needs to stay in place until unemployment plunges to 7 percent or if inflation gets past 3 percent.
We have Fed minutes released later today - this was the meeting where Ben said ultra easy money for at least 2 more years (mid 2013) but even from that meeting the framework for easing has changed.
Gold is of course reacting as more fiat currency debasement awaits - this despite the margin requirement hikes.
Let's continue to watch the market - and oil, to see if the playbook of 2010 is repeating. Good news = good news, and bad news = more Fed, etc. The ISM figures later this week and early next week, along with the employment data should give us a big hint of how this market will react thru Sept 20. The changing for more steroids from Wall Street should be a chorus by then. Let's see if oil punishes Main Street as we repeat 2010....