Fed's Eric Rosengren: I dissented in July because the economy was pretty good
|- Rosengren speaking on Bloomberg TV: This is a good time to sit back and look at the data.
- Rosengren speaking on Bloomberg TV: The US should not be easing solely because other countries are weak.
Federal Reserve's Eric Rosengren, a voting member and hawk, is making comments on Bloomberg TV. He dissented in July because he feels that the economy was still pretty good.
Key comments:
- We are in a pretty good spot right now.
- There are costs to easing policy too much, including too much leverage.
- Economic conditions in US are still ‘pretty good’.
- Dissented in July because US economy was pretty good.
- US in a pretty good spot right now.
- View at last FOMC meeting was to focus on unemployment, inflation.
- Consumption is strong and spending can support growth.
- This is a good time to sit back and look at the data.
- Cure for global weakness should rest solely on us easing policy.
- The yield curve is an important signal - Reflects global weakness.
- Exports are a relatively small share of US GDP.
- No need to take action if the outlook stays on track.
- The goal of mon. policy is to get inflation and unemployment right.
- Mon pol is already accommodative.
- Core PCE to converge on to 2%.
- The US should not be easing solely because other countries are weak.
- Stock market decline isince last Fed meeting is not a very big decline.
- Wants evedence of a slow down to justify Fed's easiing.
FX implications
There are no surprises here from Rosengren for he is a hawk and we were already privy to his reasons for dissenting. The DXY is rising in a 5-minute channel towards the 98.30s and 16th August highs.
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