Fed's Rosengren: Further rate cuts could boost borrowing and increase risks

Eren Sengezer FXStreet

In his prepares remarks delivered at an event in New York, Boston Federal Reserve Bank President Eric Rosengren argued that the economy could withstand risks of a trade war and added that further rate cuts could boost borrowing and increase risks.

"Very low rates could fuel leverage, raise risks," Rosengren further elaborated. "Low rates could encourage households to take excessive risks."

Following these comments, the US Dollar Index stays above 98.50, adding 0.2% on a daily basis. Below are some additional takeaways, as reported by Reuters.

"Trade disputes have not slowed the economy below 'sustainable rate' of growth."

"Some risky asset prices seem inflated."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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