FED's Rosengren: U.S. unemployment drop below 4 pct would overheat economy, prompt higher rates

Eren Sengezer FXStreet

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

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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