Rosengren Says Significant Fed Accommodation Still Needed

Federal Reserve Bank of Boston President Eric Rosengren said the Fed should press on with record stimulus to speed economic growth, reduce 7.5 percent unemployment and boost inflation running below 2 percent.

While the labor market has improved, “significant accommodation remains appropriate at this time,” Rosengren said today in a speech in Minneapolis. “If the incoming economic data do not reflect improvements consistent with both elements of our dual mandate, I believe the Fed should be willing to increase asset purchases,” he said, referring to the central bank’s goal to achieve stable prices and full employment.