Reuters: US Dollar Report: Oil shock could derail U.S. recovery-Fed's Rosengren

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Oil shock could derail U.S. recovery-Fed's Rosengren Mar 27th 2012, 18:22 LONDON, March 27 | Tue Mar 27, 2012 2:22pm EDT LONDON, March 27 (Reuters) - A strong spike in oil prices could derail the recovery in the United States, a top U.S. central banker said on Tuesday, adding that a strong tightening of fiscal policy also posed a risk. "If we were to get a more severe oil shock, which is certainly a possibility, that risks what is a flat recovery," Boston Fed President Eric Rosengren said at an event in London. "Monetary policy has to take fiscal policy into consideration," he said. "And there's potential at the end of the year, if we don't find a way to work together, that fiscal policy in the United States could start to get very contractionary." "Good policy matters, bad policy also matters. Hopefully we don't have bad fiscal policy," he added. In his speech earlier, Rosengren said the Federal Reserve may need to roll out more easy-money policies if U.S. growth does not pick up and the jobless rate remains high. In the question and answer session, Rosengren said the focus of further purchases - if needed - could be on mortgage backed securities. "Given the housing sector is still quite weak, and given the fact that purchases of mortgage backed securities have had more impact, I would be very comfortable, should it be needed, to focus on mortgage backed securities," he said. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions