Now is not the time to remove accommodation and policy should remain as is for "some time to come," and it may take a 6% unemployment rate before the federal funds rate target is raised, Federal Reserve Bank of Chicago President and Chief Executive Officer Charles L. Evans said Thursday.
"In answer to the questions of how much longer and whether we are near the endpoint for policy accommodation, I decidedly say no. It is not yet time to remove accommodation," Evans told a conference in Madison, Wis., according to prepared text released by the Fed. "The data are still not definitive enough to say that now is time to adjust the QE3 flow purchase rate. And we are a long way from seeing an unemployment rate below 6-1/2 percent in the context of inflation moving surely toward our target. Accordingly, I expect our overall stance of monetary policy to remain highly accommodative for some time to come. My colleagues on the FOMC and I have laid out certain markers that should help gauge the timing of when we will begin to change the stance of policy. When those markers are reached, we will carefully weigh incoming data to determine if we can improve economic activity and bring inflation in at our 2 percent objective."