HONG KONG — Chicago Federal Reserve Bank President Charles Evans said Monday that the Fed needs to take "even stronger steps" — namely further asset purchases — to accelerate "anemic" growth and insulate the economy from potential recession.

What's more, he said the Fed should be willing to tolerate inflation as high as 3% to reduce unemployment from 8.3% and said it should publicly declare that it will keep the federal funds rate near zero so long as unemployment is above 7%.

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