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1 Jun 2015
Fed’s Rosengren in no hurry to hike rates
FXStreet (Mumbai) - Boston Fed President Eric Rosengren on Monday said in remarks prepared for delivery in Hartford, Conn. that the economy is growing too slowly to justify a rate hike.
Rosengren said, “The conditions for beginning the tightening of monetary policy have not yet been met,” He further added, “I do not expect to see timely improvements in the unemployment rate and sufficient progress toward the 2% inflation target. This, in my view, makes a compelling argument for continued patience in monetary policy."
Rosengren’s comments come almost two-weeks ahead of the Fed’s June policy meeting. Fed has kept interest rates near zero since December 2008, and most policymakers, including Rosengren, have long thought they would be able to begin to lift rates this year.
A non-voting member, Rosengren also said, “the data have disappointed before, and an appropriately data-dependent monetary policy requires confirmation in the numbers, not just in forecasts of better times.”
Rosengren said, “The conditions for beginning the tightening of monetary policy have not yet been met,” He further added, “I do not expect to see timely improvements in the unemployment rate and sufficient progress toward the 2% inflation target. This, in my view, makes a compelling argument for continued patience in monetary policy."
Rosengren’s comments come almost two-weeks ahead of the Fed’s June policy meeting. Fed has kept interest rates near zero since December 2008, and most policymakers, including Rosengren, have long thought they would be able to begin to lift rates this year.
A non-voting member, Rosengren also said, “the data have disappointed before, and an appropriately data-dependent monetary policy requires confirmation in the numbers, not just in forecasts of better times.”