is in a lull right now," he said, citing a decline in jobs in December and a still-high unemployment rate of 6.7%.
"The mix that we have actually on fiscal and monetary policy is appropriate."
Rosengren's comments come after Fed Chair Jerome Powell on Thursday and other policymakers earlier in the week pushed back after a couple of their colleagues expressed optimism for sharp economic growth in the second half of the year and signaled they would consider tapering the Fed's asset purchase program in response.
"I expect that the current pace of purchases will remain appropriate for quite some time," Fed Governor Lael Brainard said on Wednesday. Both noted the economy
is still far from the Fed's goals of full employment and 2% inflation.
That experience, along with the appearance of new strains that are more transmissible and new expert forecasts that some 85% of the population may need to be inoculated before the pandemic can be quelled has brought Minneapolis Fed Neel Kashkari to his new view: that the economy will continue to suffer the effects of pandemic-related restrictions for another year.
"It's clear that the pandemic has a way to go and that many many people and many many businesses and hospitals need support until we can get this pandemic behind us, and get back to what we all know is normal, and hopefully strong growth from there," Kashkari told a virtual town hall held by the Minnesota Hospital Association. Americans, he forecast, will still need to wear masks and keep social distance through the end of the year.
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