Not only did Evans defend the central bank's recent announcement that it would embark on a third round of quantitative easing, but he also said he would have preferred if the Fed had been even more aggressive.

Evans said the Fed should keep policy loose until the unemployment ratefalls below 7 percent. The current rate of 8.1 percent is too high and showing that the economy has yet to achieve sustainable growth, he said.

"That tells me that more accommodation would be appropriate, especially if it's effective," Evans said during a "Squawk Box" interview. "By all the analyses I've seen, it will be effective and the inflation risks are not very large at the moment."

After expanding its balance sheet to $2.8 trillion, the Fed said its QE3 program would entail buying another $40 billion a month in mortgage-backed securities, with the program piggybacking on the Operation Twist bond-buying.

All told, the Fed will be buying $85 billion a month in debt.

"There's scope for doing more. I would have been doing more for a longer period of time," Evans said. "The committee made the determination that we're a lot closer to something like unacceptable growth — stall speed — and it's time to do more."

Fed critics worry that the easing policies involve too much money creation and thus will cause inflationonce those new dollars start to circulate through the economy.

The banks that have benefited from the infusion of new cash have largely used it to shore up their balance sheets rather than lend it out.