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"The Federal Reserve should try to reduce the stubbornly high U.S. unemployment rate"
- Eric Rosengren, President of the Federal Reserve Bank of Boston
President of the Federal Reserve Bank of Boston, Eric Rosengren, said the central bank should take action to decrease "stubbornly, and unacceptably, high" unemployment rate, which remains unchanged near 9 percent since April 2009.
"Given the very weak labour market conditions and the low expected inflation rate, the Federal Reserve should in my view continue to take action to aggressively try to reduce the stubbornly high U.S. unemployment rate," Rosengren said on Monday. He expects inflation to decrease below 2 percent "over the next several years."
"The Federal Reserve has taken unprecedented actions to improve the growth rate in the economy," Rosengren said. "But economic �headwinds' -- stemming from the previous financial crisis and concerns about possible future financial shocks -- have meant that despite Federal Reserve actions, economic growth has been lethargic and job growth has been too slow to make significant inroads into reducing the unemployment rate."