Fed's Rosengren warned that U.S. Q1 growth is likely to be weak
Fed's Rosengren warned that U.S. Q1 growth is likely to be weak and the next three quarters are likely to be much closer to 2.0-2.5%. The moderately hawkish Boston Fed voter warned that China and Europe are still risks to that downgraded growth forecast. He concluded that the "Fed pause is the responsible thing to do now" and lower global yields were pushing down on yields in the U.S. In his personal view, negative rates are "probably not an appropriate way to respond to the next recession." Rosengren also pointed out that the "dot plot" is not a promise of policy direction, but depends on the changes in the economy. This was more in line with his hawkish predisposition in an otherwise fairly dovish slant. He was speaking at a CS Asian Investment Conference in Hong Kong.