Fed's Rosengren: Need to think about side effects of low-for-long rate strategy
Boston Federal Reserve President Eric Rosengren said on Friday that they have to think about some of the side effects of a low-for-long interest rate strategy, as reported by Reuters.
"Monetary policy may not be able to be accommodative for as long if financial stability risks are not addressed," Rosengren further argued. "I'm worried that if we're not careful, we can create a situation where we don't get back to full employment because we have another downturn."
Market reaction
These comments were largely ignored by market participants and the US Dollar Index was last seen flat on the day at 91.82.
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.
