Posts Tagged ‘ Chicago ’

Charles Evans Dual Mandate Responsibilities Speech – Goes Too Far

September 8, 2011
By
Charles Evans Dual Mandate Responsibilities Speech – Goes Too Far

Yesterday, Charles Evans who is the ninth president of the Federal Reserve Bank of Chicago and a voting member on the FOMC, gave a speech at the European Economics and Financial Center in London. This speech goes too far with starting to push the Fed towards more stimulus as the returns from additional stimulus diminish. The debate revolving around additional Federal Reserve accommodation also made its way to the WSJ this morning. I believe that the economy is actually much stronger than is being presented by the media. Yes the unemployment rate is 9%+ and it has been tough to work it down, but the Fed can do little at this point to actually create jobs. The incremental returns from additional monetary stimulus aren’t needed and become risky with...

Read more »

Chicago Fed Index – a “Not in Recession” data point

August 22, 2011
By
Chicago Fed Index – a “Not in Recession” data point

This morning, the Chicago Fed National Activity Index came out “better than expected” for the month of July. This measure is released with a bit of a lag and is one of the last July data points to be released. The measure is comprehensive and incorporates national activity relating to inflation, employment, consumption, and housing. So while it may not reflect the sharp selloff in the market (market dropped in August), it does provide additional evidence that the economy remained stable up to the point of this recently heightened uncertainty. This is good news, because a couple of weeks of uncertainty aren’t enough to tip the US economy into a recession. In October 1987, the market crashed and pulled back 24% in a day, and there was no recession in 1987....

Read more »