Boston Fed's Eric Rosengren: Debt Pimp and Enabler
Oh dear. Did he just say that?
Federal Reserve Bank of Boston President Eric Rosengren said that the central bank risked a worsening outlook for inflation and jobs if it hadn’t embarked this month on a second round of unconventional monetary stimulus.
“Not changing policy risked further disinflation, a rise in the real cost of funds tantamount to monetary tightening, and risks of continued and possibly worsening pain in labor markets,” Rosengren said today in a speech in Providence, Rhode Island. “There are real and significant long-term costs to individuals and the economy when the unemployment rate remains stubbornly high.”
And what's this? Is this an admission from one of the Fed's own that they are, in fact, intentionally weakening the dollar to gain a competitive trade advantage? You don't say!
Rosengren, 53, defended the central bank’s strategy, saying he is “very confident of the Fed’s ability and will to exit, when necessary.” He also said devaluing the dollar is “not a goal of our policies,” though it will “stimulate exports and reduce imports,” which is a “normal consequence” of monetary easing.
Funny, how can he be confident in the plan that they do not have? Unless they somehow snuck out a plan and I just haven't noticed it but the odds of that are slimmer than the odds that the Fed will be able to get out of the corner they've backed themselves into.