CHICAGO (Reuters) - The Federal Reserve’s biggest challenge today is the credibility of its promise to boost jobs and bring excessively low inflation back to the Fed’s 2-percent goal, a top Fed official said on Tuesday.
People need to understand that the Fed is “here to deliver” on both goals, and probably continue to buy bonds until the total purchases under the current bond-buying program reaches about $1.5 trillion, Chicago Federal Reserve Bank President Charles Evans told the Illinois Bankers Association.
“I would say the benefits far outweigh the costs” for now, Evans said, of the Fed’s $85-billion-a-month bond-buying program.
“We are going to keep at it,” he said.
Reporting by Ann Saphir; Editing by Chizu Nomiyama