Fed’s Rosengren: There is no reason for us to remain accommodative

Boston Fed President Eric S. Rosengren delivered opening remarks at the Boston Fed’s 62nd Economic Conference and said that there is no reason for us to remain accommodative.

Key quotes:

   •  The likelihood of rates being low for long has increased.
   •  The recent extended period of low rates makes it important to be evaluating potential costs.
   •  The potential costs of low rates could impact how policy should prepare for, and react to, a recession.
   •  Alternative asset classes have grown rapidly during the recent period of low rates.
   •  “Reach for yield” and institutional constraints may interact to generate more risk for the economy.