Economics
Fed's Rosengren Says Growth, Inflation Risks Threaten Rate Path
- Policy makers should take downside risks seriously, he says
- Rosengren wary of global growth weakness and lack of inflation
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Federal Reserve Bank of Boston President Eric Rosengren said estimates for U.S. economic growth are falling, putting the central bank’s projected path for rate increases at risk.
While officials’ median projection last month provides a “reasonable estimate” for the likely path of the policy rate in 2016, that forecast faces “downside risks,” Rosengren said Wednesday in the text of a speech to the Greater Boston Chamber of Commerce. “I will remain highly attentive to foreign economic conditions, any weakening of the domestic economic situation, and the path of U.S. inflation.”