Fed's Rosengren says growth has slowed, economy still doing quite well

Author: Eamonn Sheridan | Category: Central Banks

Eric Rosengren, president of the Federal Reserve Bank of Boston

Prepared speech, remarks crossing but little discernible impact. 

  • Says he favours Fed's adopting a target inflation range that recognizes challenge of low rates
  • combination of low inflation, low interest rates means Fed has little room to respond to downturn
  • by holding mostly long-term securities, Fed is currently lowering long-term rates
  • Fed is waiting to see convincing evidence that inflation will sustain 2% target
  • data suggest growth has slowed but economy still 'doing quite well'; recession not in his most likely forecast
  • too-low inflation expectations can be hard to alter
  • Fed's balance sheet asset allocation will be a topic in future FOMC discussions
Summary of main points via Reuters 

EricRosengren, president of the Federal Reserve Bank of Boston

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