Boston Fed President Eric Rosengren told Yahoo Finance that he had “somewhat more pessimistic forecast” than his FOMC colleagues. He doesn’t expect unemployment rate to get below 6% by the end of next year.
He noted, “I am very worried that we’re pretty far away from what we think of maximum employment and I think they’re going to be significant headwinds to getting there quickly.”
On policy support, he noted that 10-year yield is below 70 basis points, “well below the lowest level” in the middle of the 2008/9 financial crisis. So, more quantitative easing might not be “nearly as supportive” as fiscal policy.
