Wednesday, September 07, 2011

(Lagarde Speaks and then) Fed’s Evans Calls to Cut Unemployment to 7.5%

No sooner does former top Chicago labor/anti-trust lawyer, now IMF head Christine Lagarde instruct "the US and Europe to abandon fiscal austerity and switch to stimulus measures" than Federal Reserve Bank of Chicago President Charles Evans echoes her, saying "the central bank should move 'aggressively' to reduce unemployment, even at the cost of temporarily pushing inflation higher."

Bloomberg reports:
“Given how truly badly we are doing in meeting our employment mandate, I argue that the Fed should seriously consider actions that would add very significant amounts of policy accommodation,” he said. “Such further policy accommodation does increase the risk that inflation could rise temporarily above our long-term goal of 2 percent.”


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