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8/2, 5:55 PM (Source: TeleTrader)
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Fed's Rosengren sees no case for policy easing

Eric Rosengren, president of the Boston branch of the central bank of the United States, said on Friday that the reason why this week he voted against the decision to lower interest rates was the economy's good performance. Furthermore, he pointed to a degree of risk.

"With the unemployment rate near 50-year lows and inflation likely to rise toward the 2% target, and with financial stability concerns being somewhat elevated given near-record equity prices and corporate leverage, I do not see a clear and compelling case for additional monetary accommodation at this time," the member of the Federal Open Market Committee wrote. He added price growth measured by the so-called trimmed mean of the personal consumption expenditures is at 2% and that the US economic growth is above long-term trend or potential level.

Rosengren and Kansas City Fed President Esther George were the only voting members on the Federal Reserve's panel to dissent this time and both said policy measures shouldn't change.

Breaking the News / IT