Fed's Rosengren: Economy could face difficult road ahead over next few months

Boston Federal Reserve President Eric Rosengren said on Friday that the US economy could potentially face a difficult road ahead over the next few months, as reported by Reuters.

Key takeaways

"Monetary policy is quite accommodative."

"Both the monetary and fiscal policy responses have been quite appropriate, given the severity of the economic crisis."

"Fed policymakers expect to keep interest rates at near-zero levels until 2% inflation target has been reached."

"Savings built up during pandemic could later lead to a significant increase in demand for activities limited by social distancing."

"Fed will continue purchases until there is substantially more progress in lowering unemployment and raising inflation."

"Without affordable child care and early childhood education, many people will be held back from participating in the labor market."

Market reaction

These remarks were largely ignored by the market participants and the US Dollar Index was last seen losing 0.3% on the day at 90.32.