Charlie Evans proved once and for all that he is the 'doviest' dove in the Fed's dove-cote as he espoused his own special sense of reality with CNBC's Steve Liesman this morning. His ability to speak out of both sides of his dual-mandate mouth while suppressing the reality of rising prices and expounding on the need for the Fed to be more accomodative (we assume they will stop at infinite infinities of easing), Evans made it very clear, when pushed on the topic of QE efficacy, that they will continue to print (unable to provide any quantitative assessment of the result) until morale improves. That's it; nothing less. Inflation - no worries; all the time the unemployment rate is where it is they are justified in debasing to the max. Must watch clip to understand why precious metals have surged this morning and stocks not so much as they will repeat the same actions again and again and expect a different outcome.
Evans: Until we see six months of 200k-plus NFP then maybe they ease off...
Evans: Growth forecasts based on his view of more accomodative policy (so far too rosy)...
Evans: Refinancing their mortgages is his transmission channel of choice... (just ignore the whole balance-sheet-recession debt-reduction thing...)
Evans: banks are looking for good quality credits to lend to... (yeah, not so many of them around eh?)