Search ForexCrunch

Below are some key quotes, via Reuters, from the speech delivered by Boston Fed President Eris Rosengren.

  • The further U.S. gets below full employment the more risk there is of inflation increasing.
  • Fed will learn a lot in coming year over appropriate size of balance sheet.
  • Fed cannot determine appropriate size of balance sheet before it decides on framework of monetary policy.
  • No alarm going off yet in financial markets, but are “A bunch of yellow lights” including commercial real estate.
  • Continued growth, tighter labor markets will likely lead to “imbalances” including “but not limited to” faster inflation.
  • Gradual rate increases should continue to “mildly restrictive” level to avoid need for faster rate increases later.
  • Strong growth expected to continue for now, though trade and emerging markets problems pose risks.
  • Positive real rate of interest one sign economy is “fully recovering” from great recession.