Dow Jones Newswires | Current U.S. monetary policy remains
appropriate given subdued inflationary risks, but unemployment is a
serious concern, the president of the Chicago Federal Reserve Bank said
Tuesday.

Speaking at a media briefing in Hong Kong, Charles Evans said U.S.
unemployment could top 9 percent by the end of this year and could
still be at 8 percent by the end of 2011, according to Reuters. The
jobless rate ultimately should fall back to around 5 percent as the
economy recovers, Evans said.

Evans is not currently a voting member of the Federal Open Market Committee, the Fed’s rate-setting body. But as the economy struggles to find its footing, Evans said current policy – which is to keep rates at ultra-low levels for an extended period of time – remains appropriate, Reuters reported.

He also said the Fed should have the authority to take over struggling institutions that risk destabilizing the entire financial system, Reuters reported.