Fed forward guidance boosted growth: Evans
OSLO, Sept 27
OSLO, Sept 27 (Reuters) - The U.S Federal Reserve's forward guidance on interest rates has helped boost economic growth, a top Fed official said on Friday.
Charles Evans, President of the Chicago Federal Reserve Bank, said better than expected growth in U.S. gross domestic product between 2009 and 2010 could be attributed to "favourable forward guidance shocks".
While GDP growth from 2011 to 2013 fell short of forecasts because of "massive headwinds," Evans said it would have done even worse but for the Fed's promise to keep interest rates close to zero for an extended period.
Evans also said that "degrading" monetary policy by using it to fight financial instability would lead to inflation that is below the Fed's 2 percent target and to more resource slack.
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