Eric Rosengren, the head of the Federal Reserve Bank of Boston, is issuing an unusual public plea to his colleagues in Washington, urging the nation’s central bankers to ignore election-year pressures and do more to jump-start the muddling economy.
Less than a week after Federal Reserve policy makers elected not to take new steps to stimulate the economy, Rosengren in an interview added his voice to a handful of dissenters, saying the central bank has to act at its next meeting in September to revitalize the economy. The Fed should not worry, he said, if the move is seen as influencing the presidential election.
Comments
I find it interesting that Rosengren apparently is not advocating for still another step: more public pressure on politicians. Both the eurozone and (especially) US "fiscal cliff" problems are due in large measure to the lack of action by the political class. One could argue the root cause of the current global economic malaise is political gridlock run amok.
Mr. Rosengren, what more can the Fed do? Short term interest rates are nearly zero and the Fed has pumped huge quantities of excess reserves into the banking system. But banks are reluctant to loan and potential borrowers are afraid to take on debt. The solution is not more aggressive monetary policy but tax and regulatory reform.
Eric Rosengren believes it is time for another 'bonus' windfall. But, someone should tell him a 2 day TAX-FREE exemption is on the horizon for the 99% who he is welcome to join.
Greenspan refused to take basic actions for Bush 41, why should Obama be special??
Mr. Rosengren is not being honest here. This is POLITICAL. He hasn't provided any PROOF that "Jumpstarting the Economy" with more money would help. He shows his TRUE Left leanings when he reiterates that the Fed's mandated role is to promote "full employment". But "full employment" for WHO? He doesn't say. Congress and especially, the White House is the reason there isn't full employment. ----And the previous money printing has failed, and failed, and FAILED. ---More Fed QE will just goose up the stock market with funny money. Eric Rosengren KNOWS.-----------This is only to promote full employment for his friend Barack Obama. Hopefully the voting members of the Fed won't fall for this phony argument.