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Rosengren: Observations on Financial Stability Concerns for Monetary Policymakers
Speaking at a conference in Beijing, Boston Fed President Eric Rosengren said it has been appropriate to be patient about normalizing interest rates, given that growth “has continued to underwhelm.” But the Fed’s mandated goals – stable prices and maximum sustainable employment – are likely to be achieved relatively soon, and “keeping interest rates low for a long time is not without risks.” As a result, important questions confront monetary policymakers in the United States, including when and how quickly to continue normalizing interest rates. Central banks must think about attaining their mandates ... (full story)