Fed's Rosengren speaks on the economy and policy
- more fiscal and monetary accommodation is appropriate now that a 2nd wave of Covid 19 infections is underway in the US
- excessive risk-taking behavior prior to Covid 19 is likely to delay US recovery
- women and minority workers are disproportionately impacted by excessive risk-taking by service sector firms
- imbalanced human toll of Covid 19 on vulnerable workers in labor market is bad for economy and democracy
- a potential cost of the Fed's new policy is that low rates encourage households and firms to take on more leverage and risk
- this is an important time to focus on preventing the buildup of financial imbalances
- easy Fed policy requires financial risk guardrails
- watch for reaching for yield and excess risk-taking
- path to writing economy hinges on controlling virus
Boston's Fed Rosengren remarks in text of speech. He is not a voting member on the 2020 Fed board.
