Fed's Rosengren (moderate, non-voter): Fed has to respond to very tight labor markets or may damage the economy - comments from Montreal
- Failing to respond to very tight labor markets with rates remaining negative in real terms could potentially risk unnecessarily shortening the economic recovery
- Prudent risk management would argue for the continued gradual removal of monetary policy accommodation in order to minimize the risk of outcomes that might prematurely shorten the current economic recovery
- Expect US labor market will continue to improve