Boston Fed President Eric S. Rosengren delivered opening remarks at the Boston Fed’s 62nd Economic Conference and said that there is no reason for us to remain accommodative.
Key quotes:
“¢ The likelihood of rates being low for long has increased.
“¢ The recent extended period of low rates makes it important to be evaluating potential costs.
“¢ The potential costs of low rates could impact how policy should prepare for, and react to, a recession.
“¢ Alternative asset classes have grown rapidly during the recent period of low rates.
“¢ “Reach for yield” and institutional constraints may interact to generate more risk for the economy.
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