Fed’s Rosengren says central bank should closely monitor risks to financial system

Jun 23 (Reuters) – Federal Reserve officials should closely monitor risks to financial stability, and in particular rising home prices should be monitored, Boston Fed Chairman Eric Rosengren said on Wednesday. .

“Prolonged periods of very low interest rates encourage people to take risks,” Rosengren said during a virtual conversation hosted by the New England chapter of the National Association of Corporate Directors.

The rise in house prices seen in some markets is similar to that seen during the boom and bust of the last housing crisis, although that pattern doesn’t necessarily repeat this time, Rosengren said.

(Report by Jonnelle Marte, Edited in Spanish by Manuel Farías)

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