Bloomberg Talks Eric Rosengren Talks Fed Cuts, Dual Mandate, Stephen Miran
Aug 11, 2025
Eric Rosengren, former President of the Federal Reserve Bank of Boston, shares insights on the challenges facing the Fed's dual mandate of employment and price stability. He discusses the current U.S. economic data and stresses the importance of cautious rate adjustments amidst inflation and labor market conditions. Rosengren also raises concerns about Stephen Miran's nomination to the Fed Board, hinting at potential inconsistencies with the current administration's policies. The dynamics of labor market data and the Fed’s independence are key highlights.
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September Decision Depends On Data
- Eric Rosengren says the September rate decision should wait for incoming CPI, PCE and employment data.
- He warns core CPI could surprise above 3%, so markets and sentiment can shift quickly.
Focus On Unemployment Not Payroll Swings
- Focus on the unemployment rate rather than monthly payroll swings, Rosengren advises.
- He says payrolls are noisy and can mislead because of survey response issues and revisions.
Weigh Distance And Time On Dual Mandate
- The Fed should weigh how far and how long inflation and employment are from their targets, Rosengren says.
- He notes core PCE is 2.8% and unemployment is about 4.2%.