BOSTON (MNI) – Following are excerpts from prepared remarks by
Boston Federal Reserve President Eric Rosengren Monday on “Higher
Education and the Economy” to the New England Board of Higher Education:
I have described the Boston Fed’s research that highlights the
important role that education plays in our regional development. Let me
touch briefly on other policy work that we do and describe what is
currently a major concern to us.
At the Boston Fed it is central to our mission to explore ways that
U.S. monetary policy entrusted by Congress to the Federal Reserve
System can promote maximum employment with stable prices. My own
forecast is that inflation is likely to be below 2 percent over the next
several years, in part because of the very weak labor markets. Given the
very weak labor market conditions and the low expected inflation rate,
the Federal Reserve should in my view continue to take action to
aggressively try to reduce the stubbornly high U.S. unemployment rate.
But clearly the Federal Reserve cannot do it alone. Given the
sobering macroeconomic situation, it is important that fiscal policy,
controlled by the federal government and the states, do its part. It is
also important for international policy makers to take actions that
provide more stable world markets. But at the same time, in my view the
Federal Reserve should continue to use the tools at its disposal to
boost demand in the economy. And at the same time, we would do well to
work on addressing any impediments to students getting the employment
opportunities that will serve them, their communities, and the
macroeconomy.
It is a pleasure to be here with you today, and to take a few
minutes to explore the nexus between higher education and the
macroeconomy. Thank you for having me.
** Market News International **
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