Fed Will Likely Weigh Rosengren’s Call for Stimulus

Some Federal Reserve policy makers may join Boston Fed President Eric Rosengren in backing new stimulus at a meeting this month after unemployment rose to 8.2 percent in May, economists said.

Rosengren said the Fed should further its full-employment mandate and extend beyond June a program known as Operation Twist, which lengthens the average duration of bonds on its balance sheet. He spoke before a report yesterday showed the U.S. added 69,000 jobs in May, the fewest in a year, pushing the yield on 10-year Treasury notes to a record low.