The U.S. Federal Reserve will continue providing support to the U.S. economy by expanding its credit facilities "as conditions warrant", Chicago Fed President Charles Evans said on Tuesday.
Speaking at a conference organized by the Czech National Bank in Prague, Evans, who also sits as a voting member on the Federal Open market Committee, said the Fed's Term Asset-Backed Securities Lending Facility and other initiatives to buy U.S. Treasuries and mortgage backed securities would be expanded according to the inflation and growth outlooks for the United States.
He also said that recent measures taken by U.S. authorities "are helping to address the difficulties we face and to eventually move the United States back to financial stability and economic recovery."
The Fed's efforts should "also be positive factors for financial markets and economic activity around the world," he added.
Last Wednesday, the FOMC announced plans to purchase up to $300 billion in long-term Treasuries over the next six months.
The FOMC also committed to purchasing an additional $100 billion in agency debt, and up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to as much as $1.25 trillion this year.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2009