FED's Rosengren: U.S. unemployment drop below 4 pct would overheat economy, prompt higher rates
|Boston Fed President Eric Rosengren crossed the wires in the last minutes, via Reuters, noting that the current jobless rate at 4.4% has already fallen below his 4.7-percent estimate of "natural employment," and that this theoretically was the lowest level possible before wage pressures push inflation too high.
Key quotes (via Reuters):
- U.S. unemployment drop below 4 pct would overheat economy, prompt higher rates
- 4.4 pct unemployment now below 'full employment' estimate of 4.7 pct
- U.S. reforms that shrink Fannie, Freddie footprint in multi-family market could shock sector
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