Free Trial

MNI BRIEF: Pre-Covid Debt Build To Slow Rebound- Rosengren


Boston Fed President Eric Rosengren said Thursday the slow build of debt in the pre-Covid low-interest-rate environment likely will make the economic recovery from the pandemic more difficult, also emphasizing the need to take more action against financial stability risks.

"The increased risk build-up, such as the reaching-for-yield behavior in commercial real estate or increased corporate leverage, make economic downturns including this one more severe," the Boston chief said in prepared remarks for a speech at Marquette University, adding that banking data do not yet reflect significant problems in commercial real estate. "If we expect to remain in a low-interest-rate environment for a protracted period of time, we need to take more precautions against financial stability risks for when the next economic shock hits," he said without adding specifics.

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

To read the full story



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.