In a recent appearance on CNBC, MIT GCFP Visiting Scholar and former Boston Fed President Eric Rosengren discussed the Federal Reserve leadership transition, the questions Kevin Warsh’s hearing raised about central bank independence, and how current supply shocks and fiscal conditions are complicating the policy outlook.
He noted that a combination of fiscal pressures and rising input costs is contributing to inflation pressures that make interest rate cuts less likely in the near term. He also explained that while AI-related productivity gains could eventually matter for monetary policy, the current data do not yet suggest they should outweigh the inflation pressures the economy is now absorbing. Watch the full interview here.
(The GCFP does not make policy recommendations, and any opinions expressed are those of the authors and not the GCFP.)
