SEOUL, June 1 The U.S. central bank's liquidity
support was helpful in containing the 2008 financial crisis but
it could have done more, Federal Reserve Bank of Chicago
President Charles Evans said on Tuesday.
"While the liquidity support we provided the economy was very
helpful, it was clearly not enough," Evans, who is not a voting
member of the U.S. interest rate-setting panel, said during a
panel session at a seminar in Seoul.
"Given the huge resource gaps, and low and declining
inflation, more monetary accommodation was appropriate," he
added. He did not comment on the future policy of the Federal
Reserve or on the economic situation.
He said the recent re-opening by the Federal Reserve of
currency swap lines with the European Central Bank and a few
others was necessary to deal with the potential rise in dollar
funding pressures in world markets.
"This step seems prudent as the dramatic repricing of the
sovereign credit risk of some peripheral European countries has
the potential to create dollar funding pressures in world
markets," he said.
(Reporting by Yoo Choonsik; Editing by Nick Macfie)