Eric Rosengren, president of the Federal Reserve Bank of Boston
Prepared speech, remarks crossing but little discernible impact.
- Says he favours Fed's adopting a target inflation range that recognizes challenge of low rates
- combination of low inflation, low interest rates means Fed has little room to respond to downturn
- by holding mostly long-term securities, Fed is currently lowering long-term rates
- Fed is waiting to see convincing evidence that inflation will sustain 2% target
- data suggest growth has slowed but economy still 'doing quite well'; recession not in his most likely forecast
- too-low inflation expectations can be hard to alter
- Fed's balance sheet asset allocation will be a topic in future FOMC discussions
Summary of main points via Reuters
