Fed’s Rosengren: Need Capital Buffers, Fiscal Policy in Next Downturn

The transcript discusses the current state of monetary and fiscal policies, highlighting the reduction in the Fed funds rate and its implications. It emphasizes the limited room for further easing and the importance of fiscal policy in a low interest rate environment. The speaker expresses concerns about the potential for a recession and the challenges in implementing effective policies, suggesting that creative solutions may be needed if traditional methods prove insufficient.

How has the federal funds rate changed since the last three easing measures?

What concerns does the speaker express about the current monetary policy?

What does the speaker imply about the effectiveness of quantitative easing in the current economic context?

What role does fiscal policy play in a low interest rate environment according to the speaker?

What potential outcome does the speaker suggest if there is no fiscal policy response during a recession?