Fed should stand pat for now and be open to moving rates up or down, Rosengren says
The U.S. central bank should hold monetary policy steady and be open to moving interest rates up or down, until it is clear whether the pessimism evident in financial markets is justified, said Boston Fed President Eric Rosengren, on Wednesday. The recent decline in asset values could portend a decline in future economic growth and, in that scenario, there might be no need for future interest rate hikes, Rosengren said. The Boston Fed president, who has been strongly in favor of the Fed's recent steady tightening of monetary policy, said he thinks financial market sentiment have become "unduly pessimistic." Consumers were the engine of good growth seen last year there are many reasons to believe that will continue, he said. Rosengren is a voting member of the Fed's interest-rate committee this year. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.