Fed's Rosengren is a nonvoter in 2020

  • Unlikely US will have economic downturn in 2020
  • This is a good time to patiently assess economy
  • Inflation to move a narrow range around 2% Fed goal
  • Global economy still faces number of downside risks
  • Don't need more Fed easing unless the material change
  • Sees unemployment moving around current levels in 2020
  • Prefers to have a larger balance sheet to boost liquidity in repo markets than to adjust banking regulations
  • Strength of US households likely to continue to buffer weakness from business investment
  • US economy is currently in a good place
  • This is the perfect time to increase the countercyclical capital buffer
  • Definitely not good news that Boeing keeps having difficulties getting planes up and running
  • There are good reasons why yield curve is not as good a recession indicator as before, including foreign demand for longer-term securities and treasuries used as a hedge

Rosengren is considered more of a hawk but will not be a voting member on the Fed in 2020. His comments are largely in line with the Fed. The December stock plot shows the Fed is not expected to change policy in 2020.