Rosengren: U.S. Cannot Afford Housing Market ‘Boom And Bust’ (FT)

Key snippets from the FT interview with Boston Fed President Rosengren flagged earlier:

• "It's very important for us to get back to our 2 per cent inflation target but the goal is for that to be sustainable. And for that to be sustainable, we can't have a boom and bust cycle in something like real estate."
• "Fed officials are now beginning to discuss trimming that bond buying. And Rosengren said that "when it is appropriate" to begin that process, mortgage-backed securities purchases should be reduced at the same rate as Treasury purchases. That would mean the direct support to housing finance would wind down more quickly. "That would imply that we would stop purchasing MBS well before we stopped purchasing Treasury securities," he said."
• "Given the rapid recovery, Rosengren said "the conditions for thinking about whether we've attained substantial further progress will probably be met before the beginning of next year"."
• "There's a great deal of uncertainty in the forecast," Rosengren said. "Some people are going to have very rapid growth [and] the conditions for tightening policy may be happening sooner. And other people are going to think that the recovery is going to be a little slower."