Boston Federal Reserve Bank President Eric Rosengren stated Monday that one additional month of strong job gains could fulfill the U.S. central bank’s requirements to reduce monthly asset purchases.
- Rosengren further stated the U.S. economy had two consecutive months where it created over 900,000 jobs, and the unemployment rate declined to 5.4%.
- Another strong labor market report would be supportive of announcing in September that the economy is ready for the start of the taper program.
- The US Fed in December emphasized on the decision to continue purchasing assets at the current pace of $120 billion a month until they achieve significant progress towards the central bank goals.
- Rosengren believed the standard was already fulfilled for inflation that is running slightly above the Fed’s 2% target.
The central bank policymaker repeated his view that he would support the reduction of purchases of mortgage-backed securities and Treasury securities by equal amounts.
DXY up +0.08%, EUR USD down -0.02%.Source: Reuters