Rosengren Says Fed Shouldn’t Be in a Hurry to Raise Rates
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Federal Reserve officials shouldn’t be in a hurry to unwind monetary stimulus because elevated slack in the U.S. job market is keeping inflation below the Fed’s target, said Boston Fed President Eric Rosengren.
“Significant excess capacity remains in labor markets,” Rosengren said today in a speech at an annual conference held by the New Hampshire and Vermont Bankers Associations in Boston. “It seems to me appropriate for monetary policy to continue to be patient in the interest of ensuring that the economy reaches full employment and the 2 percent inflation target as quickly as possible.”