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.

FX

Articles You May Like

Yen Slide Intensifies, More Downside Likely Ahead
Forexlive Americas FX news wrap: Non-farm payrolls soften but not enough for 50 bps
Gold Price Today: Yellow metal starts the month flat, silver down by Rs 1,000/kg
USDJPY moves lower to test the August low and finds support buyers.
US Dollar holds steady after mixed NFPs

Leave a Reply

Your email address will not be published. Required fields are marked *