despite Alcoa earnings and AMD warning.
Spain bailout in focus. Free Money is great.
Economists at Wall Street's top bond-trading firms now put the likelihood of a third round of quantitative easing at 70 percent, a Reuters poll showed on Friday, up from 50 percent on June 20.
The Fed next meets to discuss policy on July 31 to August 1, and then on September 12 to 13.
Evans said the outlook for tepid economic growth meant the jobless rate - stuck at 8.2 percent in June - was likely to stay well above sustainable levels for years to come.
Unemployment has been above 8 percent for three years, much higher than the 5.25 to 6 percent that Fed officials see as full employment.
Late last week, various central banks including those of China and the euro zone eased monetary policy, reflecting growing alarm over the health of the world economy.
Rosengren noted that economic activity was slowing in many parts of the world, including the United States and China, while "it looks like Europe is in a recession."
"This likely reflects a widespread concern that global trade may be disrupted if there is an international financial shock, and that businesses are postponing hiring and investment decisions until the global outlook is more certain," he said.
| 