Comments from Boston Fed President Eric Rosengren:
- Benefits of QE3 outweigh “any reasonable estimate” of costs
- Sees little evidence Fed policy generating significant financial stability problems at this point
- Plays down risk of a stock bubble
- Fed should pursue asset purchases through 2013, can vary amounts as economy evolves
- US economy remains “far from where we want it to be”
- Should closely monitor markets where underwriting standards are slipping, cites new bond covenants in high yield markets
Rosengren is a dove and there is nothing surprising here.