DUBLIN The chief of the Federal Reserve Bank of Chicago said Friday that risks to the U.S. economic outlook from fiscal policy are positive as long as it is not overly stimulative, and said he believes that global risks to U.S. growth have receded.
"The U.S. economy has sound fundamentals right now so, I mean, it's difficult to come up with very many downside risks there," Evans told Bloomberg TV in an interview after a talk in Dublin. "If anything the fiscal policy would be upside risks, in terms of growth and pushing unemployment even further down, which could have its benefits as I said before, but you can overdo that."
"I think the global environment is much more sound now, actually," he added. "I've been nervous about that, but I just can't discount the reports any more from business contacts that say that Europe is doing better."
(Reporting by Ann Saphir in San Francisco; Editing by Chizu Nomiyama)