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"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)
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