Fed’s Rosengren: Need to think about side effects of low-for-long rate strategy

FX

Boston Federal Reserve President Eric Rosengren said on Friday that they have to think about some of the side effects of a low-for-long interest rate strategy, as reported by Reuters.

“Monetary policy may not be able to be accommodative for as long if financial stability risks are not addressed,” Rosengren further argued. “I’m worried that if we’re not careful, we can create a situation where we don’t get back to full employment because we have another downturn.”

Market reaction

These comments were largely ignored by market participants and the US Dollar Index was last seen flat on the day at 91.82.

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