'Federal Reserve Bank of Chicago President Charles Evans said the drop in the unemployment rate to 8.5 percent may be partially reversed in coming months. Im a little concerned that the most recent improvement is going to be transitory and it might move up above 8.5 percent, Evans said in response to audience questions after a speech today in Carmel, Indiana. Evans said he forecasts that at the end of the year, were not going to be very different from 8.5 percent unemployment.'... ...The weakness in the economy means that substantial monetary stimulus is called for, he told reporters, and that $600 billion in purchases would be quite a good place to start. Mortgage-backed securities could be a perfectly fine choice for those asset purchases, Evans said. Mortgages might have a more direct effect on the economy. The Fed purchased $1.25 trillion in mortgage-backed securities in its first round of large-scale asset purchases, or quantitative easing. Including both rounds of asset purchases, the Fed purchased a total of $2.3 trillion in assets.' http://www.bloomberg.com/news/2012-...y-risks-errors-of-japan-great-depression.html
