Fed's Rosengren: Does not expect US to breach 2% sustained inflation over next two years

Author: Adam Button | Category: Central Banks

Comments from the Boston Fed President:

  • Fed will continue to purchase long-term assets until the economy is on a stronger economic footing
  • We are likely to see a significant pickup in consumption in H2
  • More needs to be done to make financial infrastructure more resilient and avoid future shocks similar to March
  • Highly accommodative fiscal and monetary policy will provide significant tailwind for risky assets in 2021
I feel like Rosengren is a lonely voice in the wilderness about the problems of March 2020 and fixing. Because the Fed stepped in so quickly and started buying $300 billion in bonds per day, it quickly closed the wound but that's a situation that can never happen again. Yet it seems like there's no political will to do anything but print more money and pretend there will never be an unexpected crisis.

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