Fed’s Rosengren Highlights Growing Tensions Inside FOMC

Fri, September 23, 2016


The president of the Federal Reserve Bank of Boston took direct aim at Janet Yellen’s argument for keeping interest rates unchanged this week, shedding more light on pressures confronting the Fed chair as she tries to coax the U.S. economy through a period of slow growth and deep uncertainty.

Eric Rosengren, who dissented from the decision by the Federal Open Market Committee on Wednesday, said in a statement Friday the Fed’s failure to get back to a strategy of gradual rate increases may threaten the economic recovery.

…Rosengren has “very, very clearly demonstrated that he is not an inflation nutter,” said Lou Crandall, chief economist at Wrightson ICAP LLC, in Jersey City, New Jersey. He has “laid out the dovish case for a rate hike,” and claiming prudence in central banking “is always an attempt to take the higher ground.”