Free Trial

Boston Fed Rosengren:"Advisable Remove Accommodatn Next 1.5Yrs

By Sheila Mullan
     NEW YORK (MNI) - Boston Fed President Eric Rosengren said that it was
"advisable" for the Fed to "remove accommodation" from U.S. monetary policy for
the "next year and a half."
     Rosengren, in comments to audience members following a speech, said that
the Federal Reserve officials "don't want to have to raise" rate "too" fast,
which is a danger if the Fed would wait too long to tighten rates. Such a
delayed tightening runs the risk of the Fed needing to hike rates "too fast" and
the danger of triggering a recession, he said. Rosengren said the Fed did not
want to "have to raise rates too fast."
     He spoke before an audience of economists and traders at the NYU Money
Marketeers.
     Rosengren said that the U.S. economy is "well below" NAIRU "now." 
     He also said that "people are pretty certain that the U.S. will" go back to
2% inflation, referring to private economists and general opinion.
     He added that the U.S.'s R* (R-Star) Rate is "higher than we are now." One
private economist listening told MNI, "it does not sound like he is a fan of
R*."
--MNI New York Bureau; tel: +1 212-669-6432; email: sheila.mullan@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
}); window.REBELMOUSE_ACTIVE_TASKS_QUEUE.push(function(){ window.dataLayer.push({ 'event' : 'logedout', 'loggedOut' : 'loggedOut' }); });