Federal Reserve Bank of Boston President Eric Rosengren said the Fed shouldn’t overreact to turmoil in financial markets as it approaches its next policy making meeting at the end of the month.
“Volatility by itself isn’t a bad thing, it’s just reflecting there’s a lot of uncertainty in the market,” Rosengren said in an Oct. 17 interview in Boston. “Just because we’re seeing volatility in the last two weeks isn’t enough to have me fundamentally change my forecasts.”
Rosengren said he believes the Federal Open Market Committee should halt bond purchases as planned when it meets Oct. 28-29, ending its campaign of so-called quantitative easing. He added the program could be extended if there is additional erosion in the outlook for economic growth.