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发帖数: 6201 | 1 https://www.washingtonpost.com/business/2019/09/03/us-economy-is-relatively-
strong-doesnt-need-lower-interest-rates-key-fed-leader-says/?arc404=true
Boston Fed President Eric Rosengren is likely to vote against a rate cut
this month.
Shortly after President Trump fired off a tweet Tuesday urging the Federal
Reserve to boost the economy by slashing interest rates, Boston Fed
President Eric Rosengren said cutting rates now would be a mistake.
Top Fed officials, including Rosengren, will meet Sept. 18 to determine if
interest rates should decline or stay the same. Trump has tweeted 34 times
in the past month demanding that the Fed lower the funds rate by a
significant amount as recession fears have risen, but Fed officials remain
divided on whether even a modest cut is warranted.
“This isn’t a free lunch. There are costs to accommodating at a time when
the economy is doing reasonably well,” Rosengren told The Washington Post
in an interview before his speech Tuesday at Stonehill College in Easton,
Mass.
[This is the factor that's likely to determine whether there is a U.S.
recession]
Rosengren said the U.S. economy is in a “relatively strong” place with low
unemployment, rising wages and solid growth driven by consumer spending. He
does not see a need for lower interest rates until there are clearer signs
of distress from the trade war on consumers. If the Fed lowers rates too
soon, he is worried it would leave little firepower left to fight bigger
problems later on.
“You don’t want to apply accommodation at a time when you don’t need it,
in part because you won’t have it when you do need it and in part because
there are side effects from pushing interest rates very low. It encourages
people to take more risk,” Rosengren said. | t**********i
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