US is far from maximum employment and inflation target of 2% – Federal Reserve Bank of Boston

US is far from maximum employment and inflation target of 2% – Federal Reserve Bank of Boston

US is far from maximum employment and inflation target of 2% - Federal Reserve Bank of Boston

(Reuters) – The US economy is far from its maximum employment or inflation target of 2% and rates will remain low for several years, Boston Federal Reserve Bank Chairman Eric Rosengren said Thursday.

“I am very concerned that we are quite far from what we consider to be maximum employment, and I think we will face significant obstacles if we want to achieve this quickly,” Rosengren said in an interview with Yahoo (NASDAQ: AABA) Finance.

He also reiterated his opinion that in the fall and winter, the economy could suffer if the number of people infected with coronavirus increases, which in turn will force consumers to be more careful. Rosengren added that low- and middle-income consumers, small businesses, and state and local governments need additional fiscal stimulus to cope with the crisis.

(Jonelle Marty. Translated by Vladimir Sadykov. Editor Marina Bobrova)

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