Boston Fed president, Eric Rosengren, comments
- Earlier concerns that economy might overheat now seem less pressing
- Growth issues remain, including slowdown in Europe, China, trade, Brexit concerns
- US economy likely to growth somewhat above 2% this year
- Inflation likely to be "very close" to target
- US growth likely to improve labour markets without much risk of higher inflation
With regards to the headline, Rosengren notes that it could take several meetings before the Fed has a clear read on whether economic risks will be starting to turn to reality. That, in short, means that the Fed is still going to be 'patient' with their approach and any changes to their current stance will likely take place in 2H 2019.
There is a Q&A session after his speech, so we could be hearing more from Rosengren later. Do be reminded that he is one of the more hawkish members on the FOMC and he is a voter as well for this year.
