10/11, 8:01 PM (Source: TeleTrader)
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Fed's Rosengren stays opposed to rate cuts

The central bank of the United States has lately provided stimulus which would last for "the next several quarters," said Eric Rosengren. Speaking on Friday in Wisconsin, the president of the Federal Reserve Bank of Boston highlighted the risks from trade friction and geopolitical events, but added cutting interest rates "too agressively" may lead to an excessive chase for yield. The position is "accommodative" and the economy's performance is still in line with forecasts, in his view.

"It seems appropriate to continue to closely monitor incoming data to determine if the forecast of growth around potential is likely to be achieved, or if the risks I have outlined are indeed materializing," this year's voting member on the Federal Open Market Committee said. The top rate-setter asserted the employment and inflation goals are "very close."

Rosengren acknowledged he would back "aggressive easing" in case of a substantial slowdown in economic growth. He has opposed rate cuts both last month and in August.

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