Fed's Rosengren (dove, FOMC voter): Fed is missing both of its mandates by large margins, monetary policy must remain highly accomodative, exit from stimulus should be very gradual
- US economy to grow around 3% in 2014. US economy is far from where it needs to be.
- Very low inflation warrants patience with Fed policy, low inflation may mean that rates are too high.
- Discouraged workers are partly to blame for lower unemployment rate.
- Full employment in the US is around 5.25%.
- There are significant costs that come with slow recovery.