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Rosengren: CB Independence: What It Is, What It Isn’t – & the Importance of Accountability
Six takeaways from Boston Fed President Eric Rosengren’s July 19 remarks at the Annual Meeting of the Central Bank Research Association, held in New York City: Takeaway: Central bank independence is not about deciding what overarching goals to pursue, but is rather about allowing the central bank to determine how best to pursue them. Excerpt: “For the Federal Reserve, while long-term goals are determined by Congress, the day-to-day implementation of policies is and should be conducted based on data and technical analysis, independent of short-term political objectives.” Takeaway: Several mechanisms to ensure ... (full story)
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Fed’s Rosengren not on board for rate cut: ‘I think we should wait’
Boston Federal Reserve President Eric Rosengren is lining up against an apparent push to cut interest rates, telling CNBC in an interview Friday that the central bank can afford to be patient as long as the economy holds up. Speaking just 12 days before the Fed is expected to ease monetary policy, Rosengren said he is aware of uncertainties and downside risks but doesn’t think they’re strong enough yet to warrant the first rate reduction since late 2008 during the financial crisis. “So, given that the economy is quite strong, given that I do think that inflation is going to be very close to 2%, and given that ... (full story)
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- Jul 19, 2019 3:32pm Posted by
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