Fed’s Rosengren Sees More Risk of Labor Scarring Than Inflation

Federal Reserve Bank of Boston President Eric Rosengren said he doesn’t expect to see sustained 2% inflation for the next two years so long as U.S. unemployment remains high.

“I would be very surprised if we see a sustained inflation rate at 2% in the next year or two with labor markets as disrupted as they have been,” Rosengren said in a virtual panel discussion Wednesday.