Evans Urges Fed to Do More Asset Purchases

Charles Evans, president of the Federal Reserve Bank of Chicago, Tuesday urged the Fed to do more asset purchases, notably mortgage-backed securities purchases, as he felt the United States is currently in a grave “liquidity trap” situation.

During a question-and-answer session following a speech to the Council on Foreign Relations, Evans said under such circumstances, he would even tolerate inflation of up to 3% to aid the recovery.

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