Federal Reserve Bank of Boston President Eric Rosengren said that the Fed should buy mortgage bonds until the jobless rate falls to 7.25 percent and hold the target interest rate near zero until hitting 6.5 percent unemployment, Bloomberg News reported yesterday. "As long as inflation and inflation expectations are expected to remain well-behaved in the medium term, we should continue to forcefully pursue asset purchases," Rosengren said. The Boston Fed chief’s proposal would set "a threshold, not a trigger," he said. Once achieved, "the assessment of continued asset purchases would commence."
