Fed's Evans says Congress must spend more

Chicago Fed President Charles Evans said "Fiscal support is just fundamental" and the economy faces "recessionary dynamics" if Congress does not pass a fiscal package for unemployed workers and state and local governments. From Ann Saphir at Reuters.

Evans didn't rule out more quantitative easing by the Federal Reserve but doesn't think it's imminent.

The Fed is already buying $120 billion of Treasuries and mortgage-back securities each month, the yield on the 10-year Treasury is still very low, and the Fed's newly adopted forward guidance is very aggressive, Evans said.