wsj art 7-12 - Joseph Arabbo Professor Tracy WSJ Article...

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Joseph Arabbo Professor Tracy WSJ Article July 16, 2010 Boston Fed’s Rosengren: Growth Slowing, Deflation Is Emerging Risk Summary This article in the Wall Street Journal addresses the concern about the state of the U.S economy. It mainly reflects the opinions and standpoint of Federal Reserve Bank of Boston President Eric Rosengren. He largely revolves around the topics of inflation, deflation, the state of growth of US economy and the Federal Reserve Bank stance on these matters. Rosengren also states his rising concern on deflation, if that were to occur. He compares declining core price in Japan to our current situation, but asserts there are tools to tighten up the economy if growth is faster than anticipated. If the economy falters, there are a few options for the Federal Reserve to take action on. First, they may start to reinvest proceeds from maturing mortgage bonds. They can buy securities, and keep interest rates lower, or prevent them from going up faster. Rosengren asserts that he is not convinced that the Federal Reserve needs to take intermediary action on
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wsj art 7-12 - Joseph Arabbo Professor Tracy WSJ Article...

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