Fed's Rosengren backs QE through end of year
Posted: Thu Mar 28, 2013 5:27 pmFed's Rosengren backs QE through end of year
WASHINGTON (MarketWatch) - The Federal Reserve's $85-billion-a-month asset purchase program is having the desired impact of speeding up the pace the recovery and should be continued through the end of the year, said Eric Rosengren, president of the Boston Federal Reserve Bank, on Wednesday. In a speech to business leaders in Manchester, N.H., Rosengren said recent data did suggest some improvement in the economy, but at a "painfully slow pace." Economists at the Boston Fed estimate that every $500 billion in asset purchases results in a roughly one-quarter-point drop in the unemployment rate, he said. Rosengren, a voting member of the interest-rate-setting Federal Open Market Committee this year, said he was open to adjusting the amount of asset purchases, depending on how the economy evolves. He said the benefits of the quantitative easing program outweigh the costs and said he had no acute concerns about financial stability at the moment.
WASHINGTON (MarketWatch) - The Federal Reserve's $85-billion-a-month asset purchase program is having the desired impact of speeding up the pace the recovery and should be continued through the end of the year, said Eric Rosengren, president of the Boston Federal Reserve Bank, on Wednesday. In a speech to business leaders in Manchester, N.H., Rosengren said recent data did suggest some improvement in the economy, but at a "painfully slow pace." Economists at the Boston Fed estimate that every $500 billion in asset purchases results in a roughly one-quarter-point drop in the unemployment rate, he said. Rosengren, a voting member of the interest-rate-setting Federal Open Market Committee this year, said he was open to adjusting the amount of asset purchases, depending on how the economy evolves. He said the benefits of the quantitative easing program outweigh the costs and said he had no acute concerns about financial stability at the moment.