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

Full text is here

EricRosengren, president of the Federal Reserve Bank of Boston