UPDATE 1-Fed officials see small uncertainty from Europe

* Evans: Europe adds uncertainty; no change in his view

* Plosser: impact not yet big enough to impact U.S. policy
(Updates with Plosser)

SEOUL, May 31 (BestGrowthStock) – Two U.S. Federal Reserve officials
said on Monday that the euro zone debt crisis has added some
uncertainty to the economic outlook but the impact is not yet big
enough to influence the interest rate policy of the United

The heads of the Chicago and Philadelphia reserve banks,
neither of whom have voting rights on the Fed’s interest
rate-setting panel, said they were cautiously optimistic that the
world’s largest economy would remain on course for a sustained
recovery despite the euro zone crisis.

“The situation in financial markets in Europe does add
uncertainty, but at the moment I look for the recovery in the
U.S. to continue to improve and I don’t see any changes in my
outlook at the moment,” Chicago Federal Reserve Bank President
Charles Evans told reporters.

He said the recent rise in the unemployment rate was because
more people had resumed their search for jobs, which he said was
an indication of growing optimism.

Charles Plosser, president of the Philadelphia Federal
Reserve Bank, said the U.S. economy was not likely to encounter a

“I don’t anticipate at this point that the United States in
particular will see a double-dip, but obviously the financial
turmoil in Europe raises some clouds on the horizon that we need
to be cautious about.”

Plosser said he saw no developments in the euro zone
situation significant enough to force the U.S. central bank to
change its policy.

The two officials were speaking on the sidelines of an
international seminar hosted by South Korea’s central bank.

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(Reporting by Yoo Choonsik; Editing by Chris Lewis)

UPDATE 1-Fed officials see small uncertainty from Europe