Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Fed's Rosengren: Market turmoil hasn't yet hit U.S. economic forecast - CNBC

Send a link to a friend  Share

[October 17, 2014] WASHINGTON (Reuters) - Recent market turbulence and signs of global economic weakness haven't yet dimmed U.S. economic forecasts and won't likely change the Fed's policy path unless they do, Boston Federal Reserve Bank President Eric Rosengren said on Friday.

"So far the economic data has not shifted enough to think the overall forecast would be dramatically different," Rosengren said in an interview with CNBC ahead of a conference at the Boston Fed.

He said it was unlikely economic data would change dramatically enough for the Fed to shift gears and maintain or expand its bond-buying program when the main policy committee meets later this month.

"I don't expect that we'll need to. I certainly hope and don't expect that will be the case. But I don't rule anything out," Rosengren said.

Rosengren said the U.S. central bank was concerned about the weakness of the European economy in particular. But he said it was not clear whether a recent sell-off in U.S. asset markets portended larger problems, or merely reflected investors readjusting to the fact that growth in some parts of the world won't be as strong as expected.

"Just a couple of months ago we were talking about how little turbulence there was. It is going to take us a little time to process fully what is the reason," for the recent market slide, Rosengren said. "It is a little too soon to make a judgment."

He said the recent climb in the value of the dollar and the drop in oil prices will likely slow U.S. inflation, and could push back the Fed's first interest rate hike. But he said he has not yet changed his underlying expectation that rates would need to rise in the middle of next year.

(Reporting By Howard Schneider; Editing by Chizu Nomiyama)

[© 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Top Stories index

Back to top