Federal Reserve Bank of Chicago President Charles Evans said Friday that although the latest job creation data is disappointing, he wasn’t yet ready to call for changes in central-bank monetary policy.
Instead, he said government aid, which can be targeted and deployed quickly, is the most effective way to deliver new support to the U.S. economy right now, and is more potent relative to what the Fed can do with its suite of tools.
The November data, which showed moderating levels of job creation, was “weaker than I was expecting,” Mr. Evans told reporters after remarks to a Michigan banking group. But even so, he said he doesn’t see a need for the Fed to alter its path in what remains a time of high uncertainty.
“The most important source of stimulus for the economy over the next few months is some type of fiscal support and increase in public health safety support,” Mr. Evans said. “I think that that would be quicker. I think that that’s most relevant at the moment” compared with actions the Federal Reserve could take.
In a separate appearance, Minneapolis Fed leader Neel Kashakari joined with Mr. Evans in expressing concern about the slow pace of job creation. The government said the jobless rate stood at 6.7% last month—it’s down from a shockingly high 14.7% in April—but many economists noted the drop in unemployment was actually driven by people leaving the labor force.
