Rosengren: This Time is Different: Lessons from Past Tightening Cycles - The Implications for Monetary Policy

From bostonfed.org

Speaking today to the Forecasters Club of New York, Boston Fed President Eric Rosengren explained his views on the future trajectory of interest rate increases, citing a number of reasons to expect a more gradual normalization process compared to the last two tightening cycles (1994 and 2004). He called this more modest tightening path "both necessary and appropriate" given his analysis of the data. In particular, Rosengren noted that inflation is lower and real GDP growth is slower than at the beginning of the previous two tightening episodes. Concerning growth, Rosengren observed that over the past four quarters ... (full story)