Boston Federal Reserve Bank president Eric Rosengren Friday emphatically identified disinflation as a bigger risk than inflation in his view, and sees premature withdrawal of the Fed’s nontraditional policy mechanisms as a bigger risk than letting them run until recovery is well assured.

Speaking to the Greater Boston Chamber of Commerce, Rosengren said he is tapping his special expertise on Japan’s recent experience with quantitative easing, seeing its failures as a sign that the different U.S. policy is “on the right path.”

“It is essential that we ultimately remove many of the extraordinary programs needed to fight our economic problems — and, by the way, many of those programs are already well on the way to being unwound.”

“But at the same time, we need to be sure the economy continues on a path that will bring the unemployment rate down,” he said. “And in my view, we need to see inflation return to a trajectory that is more consistent with where I would like to see it settle in the longer run.”

Rosengren is not a Federal Open Market Committee voter this year.

— Market News International

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