Low interest rates raise issues about financial stability and policymakers must take heed, Federal Reserve Bank of Boston President Eric Rosengren said Tuesday.

“I believe monetary policymakers must factor in financial stability concerns,” Rosengren said in a speech in Amsterdam, according to materials released by the Fed.

“Financial intermediaries will need to factor in the possibility of lower rates, particularly during economic downturns, and flatter yield curves,” he said.

Low rates “have implications for monetary policy responsiveness to negative shocks,” he said.

Federal Reserve Bank of Boston President and CEO Eric S. Rosengren.
Federal Reserve Bank of Boston President and CEO Eric S. Rosengren. Bloomberg News

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