Chicago Federal Reserve Bank President Charles Evans believes that the US is still in a very tight situation and that the risks are high when it comes to double-dip recession. These risks, he said, have increased in the last six months.
He said that while contraction in the economy may not be happening, the high rates of unemployment and a rather slow growth in the housing sector is making the economy fragile.
He said to media, "A double dip is not the most likely outcome but I am concerned about how strong the recovery will be."
He supported the step of ultra-easy money that the Fed is following just now and said that it is the need of the hour for the US economy.
The interest rates are nearly zero in US and the bank has also undertaken a host of measures with the usage of U. S. Treasury bond and mortgage debt purchases, to keep the costs down.
The current rate of unemployment of 9.5 per cent, said Evan will continue in the most foreseeable future.
He also said that the current ways of securitization followed in the housing sector is causing unnecessary conflicts.
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