Boston Fed President Not Keen on Fed’s Latest Rate Cut

Speaking a few days after the Federal Reserve cut interest rates for the third time this year, Boston Fed President Eric Rosengren expressed his disagreement with the Fed’s decision. Rosengren maintained that the US economy was healthy and that the GDP was expected to “be growing around potential”.

Rosengren made these comments while speaking to Reuters on the sidelines of a conference in Oslo where he had delivered a speech. However, he did not comment when asked about his stance to keep interest rates on hold at the Fed’s next policy meeting in December.

The prolonged trade tensions between the US and China, weakening inflation and an overall slowdown in global economic growth had prompted the Fed to turn dovish in the recent few months and cut interest rates by 0.25% thrice this year. Policymakers have termed these moves as “mid-cycle adjustment” after the Fed’s hawkish stance through 2018.