Boston Federal Reserve President Calls For New Central Bank Action To Boost Economy

The Federal Reserve last week decided not to take any new steps to boost the economy’s slow recovery, despite admitting that unemployment is going to stay high for quite some time. This evidently doesn’t sit well with at least one Federal Reserve policy maker, Boston Federal Reserve President Eric Rosengren, who said in an interview, “If there’s a slowdown and you have an independent central bank, the appropriate response is to act. I think that’s exactly what we should do.” Economics professor Tim Duy noted that “these sound like very pointed remarks, the remarks of someone who is very frustrated with the current stance of policy.” As ThinkProgress has noted, the Fed has consistently failed in recent years to achieve its dual mandate of price stability and full employment.