Friday, 30 Oct 2020

Fed's Rosengren says U.S. a long way from maximum employment and 2% inflation target

FILE PHOTO: The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford/File Photo

(Reuters) – The U.S. economy is far from maximum employment or 2% inflation, and interest rates will stay low for several years, Boston Federal Reserve Bank President Eric Rosengren said on Thursday.

“I’m very worried that we’re pretty far away from what we think is maximum employment and I think there are going to be significant headwinds to getting there quickly.” Rosengren said during an interview with Yahoo Finance.

The policymaker reiterated his view that the economy could take a hit in the fall and winter if coronavirus infections rise, causing consumers to become more cautious. He said low to middle income consumers, small businesses and state and local governments need more support from fiscal aid to make it through the crisis.

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