November 16, 2021

Fed’s Rosengren says U.S. can’t afford housing market ‘boom and bust’ – FT

The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford/File Photo

June 28 (Reuters) – The United States cannot afford a “boom and bust cycle” in the housing market that would threaten financial stability, Boston Federal Reserve Bank President Eric Rosengren told the Financial Times in an interview published on Monday.

“It’s very important for us to get back to our 2% inflation target but the goal is for that to be sustainable,” Rosengren told the newspaper. “And for that to be sustainable, we can’t have a boom and bust cycle in something like real estate.”

Reporting by Kanishka Singh in Bengaluru; Editing by Tom Hogue

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