Fed's Rosengren: We have to worry about financial stability
Rosengren on CNBC:
- We have a very low unemployment rate, getting about the kind of employment growth that we would expect in a stable economy
- When labor markets are tight, we would expect wages and prices to go up over time
- I expect growth around 1.7% in the second half of the year
- Some of the data we got this week wasn't a complete surprise, we would expect manufacturing, exports and trade to be week
- The biggest question is whether it spills over to areas like the consumer
- We have to start wondering if the economy would slow down from here
- Says he still has an open mind about upcoming meeting, but notes that auto sales were strong
- Says will be watching more data
- We have already had two easings, they don't work right away
Rosengren dissented at the prior two Fed meetings. He hasn't wanted to cut rates.
He wasn't as overtly hawkish as he was in the past.