Eric Rosengren, President of the Federal Reserve Bank of Boston, noted the following key points in a research paper, which is to be presented at a conference this weekend.
“Existing policy buffers, including fiscal, monetary and banking regulations, may not be sufficient to offset future shocks, reducing the capacity available to policymakers to insulate the economy from future adverse shocks.”
“Fiscal policies, in particular, are likely to help different U.S. states to different degrees, depending on what industries their economies rely on, leaving some far behind.”
“More attention should be given to establishing appropriate policy buffers to mitigate future shocks.”
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