The Federal Reserve Bank of Boston’s President and CEO Eric S. Rosengren
Keith Bedford | Reuters
Years of low interest rates led to excessive risk taking in commercial real estate and will make the current economic downturn even more severe, Boston Federal Reserve President Eric Rosengren said Thursday.
The central bank official said he expects a wave of defaults and bankruptcies to hit that will aggravate an unemployment problem that has hit lower-wage workers disproportionately.
Regulatory authorities, he added, should have been able to see conditions building up that would make any unexpected crisis worse.
“Clearly a deadly pandemic was bound to badly impact the economy,” Rosengren said….