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IPFS News Link • Federal Reserve

Chicago Fed Asks "What Are Asset Bubbles" As Its President Calls For Even More QE

•, by Tyler Durden
  In fact, just today he reiterated his support for QE3 for the second time since the program's announcement on Thursday the 13th (a day which will live in infamy), saying the recovery has so far been so "disappointing" (which at least means one can safely ignore all those pundits who claimed over the past 3 years the economy was growing, so roughly 99% of them) that the Fed should do "even more."
"With the problems we face and the potential dangers lying ahead, it is essential to do as much as we can now to bolster the resiliency and vibrancy of the economy... We should not be resistant to policies that could move the unemployment rate closer its longer-run level, but run the risk of inflation running only a few tenths above our 2 percent goal."

Essentially, Evans, and the Chicago Fed, are explicitly stating that the Fed's actions instead of making the situation far more dire (which they have as we showed on Sunday when we demonstrated the ongoing massive deleveraging in the shadow banking system as a result of a total loss of confidence in a Fed-free economy, forcing the Fed to do ever more QE), are improving it.