The Federal Open Market Committee was spurred to action by the prospect of extended periods of high unemployment or disinflation, which “could be quite high and potentially very damaging,” Federal Reserve Bank of Boston president Eric Rosengren said Wednesday.

“An argument against further monetary easing could be made if one thought the economy was about to take off,” but recent data suggests otherwise, he told the Greater Providence Chamber of Commerce, according to prepared text released by the Fed.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.