Fed's Rosengren argues for pause, suspects financial markets 'unduly pessimistic'
One of the US central bank's heretofore more 'hawkish' policymakers argued the case for patience before deciding on the next move in monetary policy, even broaching the possibility that no further tightening might be needed.
In remarks prepared to be delivered at the Boston Economic Club, the head of the Federal Reserve bank of Boston, Eric Rosengren, said: "There should be no particular bias toward raising or lowering rates until the data more clearly indicate the path for domestic and international economic growth.
"Recent data from China’s economy, the potential for increased trade tensions, and heightened volatility all counsel for policy to be both flexible and patient.
"I recognize that the risk of a U.S. economic slowdown, led by weakness abroad, has increased.
"There might be less need – or even no need – for further tightening of monetary policy by the Federal Reserve."
Nevertheless, Rosengren also"suspected" that sentiment in financial markets was being "unduly pessimistic".