Fed's Rosengren speaking on Bloomberg television
- Pretty close to Fed inflation target
- economy is in a good place
- residential investment looks like it's picking up
- Fed does not have as much policy room as before
- little bit worried we have as much room if suffer shock
- will need fiscal policy in another downturn
- we should think more capital buffers for banks
- be we are distorting financial markets to hit inflation
- prefers Fed adopting inflation range
- don't like negative rates, particularly for the US
- negative rates would be pretty disruptive in US
- thinks it would be appropriate to have a countercyclical buffer
- repo market strains are under control
Rosengren is speaking more cautiously about the economy and policy implications. He does not favor lowering rates however (he voted against the last rate cut). He is a voting member in 2019 but will lose that vote at the turn of the year.
