Boston Fed President Eric Rosengren today suggested that the Federal Reserve’s monetary policy framework has an opportunity to adapt to the recent experience with prolonged low interest rates. Rosengren said low inflation has enabled the Federal Reserve to pursue a very gradual exit from the “extraordinary” monetary policy accommodation undertaken to address the financial crisis, Great Recession, and slow recovery – adding that he does not view the “somewhat lower than expected” recent inflation rate as particularly troublesome for near-term monetary policy. But “I do see low and fixed inflation targets as a ... (full story)