Federal
Reserve Bank of Chicago President Charles
Evans, a voter on policy this year, said the Fed may buy a total
of $1.5 trillion in bonds in a program that started in January 2013
to ensure steady employment gains.
“Given
the current conditions, I won’t be surprised if it is $1.5
trillion,” Evans, a consistent supporter of record
stimulus, said in a speech today in Chicago. “It could be a
little more than that.”
The Federal
Open Market Committee pledged last month to press on with
$85 billion in monthly bond buying until seeing substantial
improvement in the outlook for the labor market. While U.S. employers
in October added 204,000 workers, the Fed probably won’t taper its
purchases until a March 18-19 policy meeting, according to the median
of 32 economist estimates in a Bloomberg News survey Nov. 8.
“Now it looks like we are going on longer at
the full $85 billion pace,” Evans said to reporters. “I had said
it was likely to be about $1.25 trillion several months ago.”
The Fed should be careful not to prematurely
reduce bond purchases because it’s not certain labor market
improvements are sustainable, Evans said.
“I am not in a hurry myself to reduce the
flow of purchases,” he said. “I’d rather wait just a little bit
longer and have more confidence.”
Now
Over $17.2 Trillion In Debt
|
Current |
Debt Held by the Public |
Intragovernmental Holdings |
Total Public Debt Outstanding |
|---|---|---|---|
|
11/19/2013 |
12,245,151,541,443.78
|
4,955,573,829,153.78
|
17,200,725,370,597.5
|
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