Boston Fed chief sees slow growth for rest of year

The head of the Federal Reserve Bank of Boston today told a business audience in Manchester, N.H., to expect slow growth for the rest of the year.

Eric Rosengren said the national credit crunch would have been worse if the Federal Reserve had not cut interest rates and taken other steps to loosen credit this year. But he said the hoped-for reduction in interest rates for consumers and businesses has not happened.

Rosengren told the business leaders that continued weakness in the housing market and consumers’ tightening up on spending could help push unemployment above 6 percent nationally.
(AP)