Rosengren: Fed Cuts Not Guaranteed Even With New Chair

Core Viewpoint - Actions taken by the administration may undermine confidence in the Federal Reserve's independence, potentially complicating future interest rate cuts [1] Group 1: Federal Reserve Independence - Eric Rosengren, former Boston Fed President, expresses concerns that administration actions could weaken the perceived independence of the Federal Reserve [1] - The potential loss of confidence in the Fed's independence may lead to market uncertainties regarding interest rate decisions [1] Group 2: Interest Rates Outlook - Rosengren indicates that even if short-term interest rates decrease, long-term rates might increase due to market fears of persistent inflation [1] - This dynamic could create a complex environment for monetary policy, as the relationship between short-term and long-term rates may not align as expected [1]