While labor markets have improved, unemployment remains high, making it unwise to stop monetary policy accommodation now, and when it is time to make changes, a slowing rather than a complete stop would be the best procedure, Federal Reserve Bank of Boston President & Chief Executive Officer Eric S. Rosengren said Wednesday.

"Despite the slowly improving labor market outlook, the unemployment rate remains at levels close to the peaks of the past two recessions, indicating that the economy remains far from the full employment level," he told the Economic Club of Minnesota, according to prepared text of his remarks, released by the Fed. "In terms of monetary policy, it would in my view be premature to stop the Fed's large-scale asset purchase program at this time. I believe the Fed should continue the purchase program until we see more sustained improvement in labor markets and have greater confidence that the economic recovery is sufficiently self-sustaining to yield continued progress in reducing the still very high unemployment rate."

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