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| Breaking from Moneynews.com Fed's Evans: Joblessness to Linger Above 9 PercentU.S. unemployment remains a cause for concern, a top U.S. Federal Reserve official said, adding that inflationary concerns are minimal. Chicago Federal Reserve Bank President Charles Evans said he was "very concerned" about unemployment in the United States, predicting that the unemployment rate would stay above 9 percent by the end of the year. Earlier this month, the United States said the unemployment rate held at 9.7 percent. He made the comments to reporters at a media briefing in Hong Kong on Tuesday. Evans forecast the unemployment rate to contract, however, to 8 percent by the end of 2011 and then to 5 percent with an economic recovery. The accommodative U.S. monetary policy remained appropriate, said Evans, who will not be a voter on the Fed's rate-setting panel this year. The U.S. economy grew at a robust 5.9 percent in the last three months of 2009, fueling recovery hopes and contributing to expectations the Fed may begin the process of tightening financial conditions after the crisis. But at its March policysetting meeting the U.S. central bank reiterated that it would keep rates extraordinarily low for an extended period. In an effort to combat the worst financial crisis in generations, the Fed not only cut interest rates effectively to zero, but also embarked on an unprecedented emergency program of asset purchases aimed at keeping borrowing costs low and cushioning the housing sector. © 2010 Reuters. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. © 2009 Newsmax. All rights reserved. Editor's Note: |
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