Eric Rosengren is president and CEO of the Federal Reserve Bank of Boston.
- in terms of employment we're still well below where we were pre-pandemic
- we still have a fairly large gap in employment to make up
- many women pulled out of labor force for child care responsibilities
- it is surprising overall average hourly earnings are not higher
- we need to think about financial stability issues when there is a high degree of stimulus
- fed has to worry about rising housing prices and a boom bust scenario
- he is not necessarily expecting a bust in home prices
- inflation risks are heightened and fed should be attuned to those patterns
- financial markets aren't pricing assets as if they expect inflation at 3%
- any forecasts expecting inflation above 3% next year are outliers
- Fed needs to watch the data to see if inflation is more persistent than expected
- Fed will watch data and respond if necessary
- his expectation is that most price increases will be reversed going into next year his expectation is that most price increases will be reversed going into next year
Headlines via Reuters, bolding is mine. R firmly in the temporary inflation camp.
Earlier comments here:
