Faculty
"The challenge is if we have a severe crisis and fiscal policy doesn't respond quickly," said senior lecturer Eric Rosengren. "The flexibility that monetary policy provides is hamstrung" if the Fed agrees to limits on the size and composition of the balance sheet and needs permission to act.
On this episode of Bloomberg's "The Close," senior lecturer Eric Rosengren discussed how the Iran war will impact the upcoming Fed decision, the 2026 rate outlook, and Judge Boasberg's rejection of subpoenas of the Federal Reserve in the Jerome Powell case.
In this podcast episode, senior lecturer Eric Rosengren said administration actions could weaken confidence in Fed independence and complicate rate cuts. He added that even if short-term rates fall, long-term rates may rise as markets fear persistent inflation.
Senior lecturer Eric Rosengren said: "It's not that there's isn't any economic data, there's just no federal government economic data. It's not a great situation for the Federal Reserve to have to be dealing with noisier data."
