Fed likely to need to do more: Evans

http://www.marketwatch.com/story/fed-likely-to-need-to-do-more-evans-2012-06-27?link=MW_latest_news
The Federal Reserve is likely to have to take further easing steps to boost the economy, said Charles Evans, the president of the Chicago Federal Reserve, on Wednesday. "At some point, we are likely to need to do more," Evans said in an interview with reporters. Evans, a leading dove on the central bank, wants the Fed to tell the market that it would keep interest rates near zero as long as unemployment remains above 7%, and as long as inflation does not threaten to rise above 3%. But he indicated he would favor more asset purchases as a second-best easing option. Evans dismissed concerns that labor-market weakness was due to structural factors. He said the sustainable level of unemployment was in the 5% to 6% range, well below the current 8.2% level. Evans also said that the Fed's extension of Operation Twist will have a small effect on Treasury yields, but sends an important larger message that central bankers continue to think easing is worthwhile