Chicago Federal Reserve president calls for more stimulus from federal government

Chicago Federal Reserve President Charles Evans recently called for substantial accommodation from the Federal Reserve to help struggling homeowners. The mortgage assistance would work to keep mortgage rates low until unemployment is less than 7 percent or inflation reaches 3 percent over the medium term.

MarketWatch reported Evans is in support of more stimulus to keep homeowners afloat, and efforts so far from the central bank are a good starting point to surge economic activity.

Evans is one of many Federal Reserve policymakers weighing in on how best to bolster the U.S. economy. According to Bloomberg, Evans was responding to recent economic reports that found the unemployment rate fell to 8.5 percent in December, the lowest number in three years, after U.S. employers added 1.64 million workers.

Evans expects inflation will be around 1.5 percent during 2013 and 2014, while the San Francisco Federal Reserve President John Williams expects inflation to reach that level in 2012, encouraging the central bank to keep purchasing mortgage bonds.

More News