Below-target inflation could be the result of more labor market slack than the 5.8% unemployment rate suggests, Boston Fed President Eric Rosengren said Monday. Speaking at Washington and Lee University, Rosengren points out the U-6 underemployment measure is still greater today than it was its peak following the prior recession. He said that until there's stronger evidence that inflation will return to 2%, monetary policymakers should remain patient about removing accommodation. Rosengren, one of the more dovish members of the Federal Open Market Committee, becomes a voting member in 2016.
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