Former Boston Fed President Rosengren on inflation, politics, and Fed independence

In a recent appearance on Bloomberg Talks, MIT Golub Center for Finance and Policy Visiting Scholar and former Boston Fed President Eric Rosengren discussed the Federal Reserve’s policy outlook amid lingering inflation pressures and a labor market near long-run norms.

Rosengren noted that inflation remains above the Fed’s 2 percent target, while labor market conditions appear broadly stable, leaving limited justification for near-term rate cuts based on economic data alone. He cautioned that recent market expectations for policy easing appear driven more by political developments than by fundamentals.

Rosengren emphasized that monetary policy decisions remain committee based and warned that actions undermining Federal Reserve independence could complicate future rate cuts by weakening credibility and pushing long-term interest rates higher. Listen to the interview here.

(The GCFP does not make policy recommendations, and any opinions expressed are those of the author and not the GCFP.)