Fed's Rosengren: Need to understand why market and Fed forecasts are different

Author: Adam Button | Category: Central Banks

Rosengren on Bloomberg TV

  • Patience means being consistent with dual mandate
  • We're basically consistent with our 2% inflation target
  • Markets may not have much impact on the real economy
  • Wages going up is a very positive sign
  • He's not seeing banks talk about liquidity issues
  • Decline in Treasury yields seems inconsistent with the idea there is a liquidity problem
  • It's possible Fed would need to cut rates but that is not his view
  • Some firms are worried about supply disruptions during trade disputes

That's rich given that the Fed has failed to meet the 2% inflation target for 7 years straight.

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