Unless there is a material change to the US economic outlook, additional policy easing won’t be needed in the near-term, Boston Fed President Eric Rosengren said on Tuesday.
“Given that monetary policy works with lags, and Federal Reserve policymakers have already eased monetary policy three times in 2019, my view is that it is appropriate to take a patient approach to considering any policy changes, unless there is a material change to the outlook,” Rosengren explained in his prepared remarks delivered at an event organized by The Forecasters Club of New York.
These comments don’t seem to be having an impact on the USD’s market valuation with the US Dollar Index staying calm near the 97.20 mark.
Regarding the economic outlook, “with both fiscal and monetary policy being accommodative, financial conditions supportive, and recent data positive, I agree with the surveyed professional forecasters that the likelihood of a recession in 2020 is relatively low,” Rosengren noted. “However, a low probability does not mean it cannot happen, and certainly a negative shock from abroad or a significant flare up in trade disputes could change the outlook significantly.”
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