Speaking in San Diego (but from the Boston Fed - good trade)
He adds:
- Fed should consider updating policy framework
- Further jobless rate drop risks undermining recovery
- could set medium-term goals and inflation range
- sites benefit of targeting 1.5% – 3% inflation range
- lower-than-expected inflation not problem near-term
- low and fixed inflation target is potential problem
- any framework shipped should give fed more flexibility
- Rosengren lays out case for fed to switch to adjustable inflation goal within fixed range
- forecast errors on inflation, unemployment pose little challenge to gradual path of rate hikes