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FXstreet.com (London) - Chicago Federal reserve chairman and voting FOMC member Charles Evans has said that the Fed’s forward guidance on interest rates has helped boost economic growth

Speaking to a Norwegian newspaper, Evans attributed stronger than expected US GDP growth between 2009 and 2010 to "favourable forward guidance shocks".

In the interview with Aftenposten, the ultra-dovish Chicago Fed chairman who is set to speak in Oslo later today also opined that, though the US economy has struggled since then, it would be in a worse condition without the Fed’s artificially low interest rates.

Ever since the Fed made the decision to hold its asset purchase programme at USD85bn a month rather than taper, FOMC members have been falling over themselves to defend the ultra-loose monetary policy.

However, markets have now shifted their attention from US monetary policy to fiscal policy as its government rapidly approaches the current debt ceiling of USD6.799 trillion. Congress is in a stand off between Republicans that want to tie any raising of the debt ceiling with budget cuts and Democrats who want to protect spending.

The Senate will vote on a spending bill later today, which will then be sent back to the House.

The S&P yesterday made some gains before retracing. The benchmark index is currently at1,698.67, up 0.35 percent.

GBP/USD is up to 1.6100, a gain of 0.38 percent on comments from Bank of England Governor Mark Carney that he did not see a case for more quantitative easing.
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