Fed’s Rosengren: Will worry when consumers show worry

Fed’s Rosengren: Will worry when consumers show worry

FILE PHOTO: The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren speaks during the “Hyman P. Minsky Conference on the State of the U.S. and World Economies”, in New York, April 17, 2013. REUTERS/Keith Bedford

(Reuters) – Boston Federal Reserve President Eric Rosengren on Friday said he might temper his opposition to interest rate cuts if he starts to see weakness in consumer spending.

“If you think the consumer is going to hold up it’s pretty hard to have a bad outcome,” Rosengren said in answer to a question following a speech outlining his opposition to Wednesday’s rate cut by the Federal Reserve.

But he added that the consumer can be “fickle” and that policymakers shouldn’t assume that confidence will stay high. “If the consumer starts to get very concerned, then I will become more concerned,” he said.

Reporting by Jonnelle Marte; Editing by Chizu Nomiyama

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