Fed's Rosengren U.S. economy 'reasonable,' no need to cut rates

Fed's Rosengren U.S. economy 'reasonable,' no need to cut rates

Fed's Rosengren U.S. economy 'reasonable,' no need to cut rates

Federal Reserve Bank of Boston President Eric Rosengren said he doesn't believe the USA economy needs an interest-rate cut, given the positive data that's rolled in since mid-June.

"As long as the economy's doing well, if that continues we don't need accommodation", he said.

Rosengren acknowledged that growth had slowed since last year and that global risks had increased, but said he still expects the USA economy to expand by about 2 per cent this year.

In a separate interview, conducted Thursday and published Friday, Rosengren told the Wall Street Journal that economic data had improved since the Fed met in June, when it held rates steady.

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The Fed is widely expected to cut rates for the first time in a decade at its July meeting. With risks seen as continuing to rise and inflation below target, the Fed has signaled it will likely cut rates at its July 30-31 meeting.

"Central bank independence is not about deciding what to pursue but rather allowing the central bank to determine how best to pursue it, while holding the central bank accountable for as much", he told a central bank research conference in NY.

"It is quite possible that the mandated goals of the central bank - which center on attaining medium-run economic prosperity - can differ substantially from the understandably shorter-term pressures facing elected officials".

While Rosengren did not mention Donald Trump, the US president has continually expressed his displeasure with the central bank. On Friday, Trump took to Twitter to reiterate calls for lower rates and slammed the Fed for what he called its "faulty thought process".

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