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Fed's Rosengren sees low likelihood of negative rates in U.S.

Credit: REUTERS/KEITH BEDFORD

Boston Federal Reserve Bank President Eric Rosengren on Monday said the U.S. central bank is unlikely to cut interest rates below zero to combat an economic downturn.

OSLO, Nov 11 (Reuters) - Boston Federal Reserve Bank President Eric Rosengren on Monday said the U.S. central bank is unlikely to cut interest rates below zero to combat an economic downturn.

The prevalence of negative rates in Europe, however, leaves the Fed less room to maneuver, Rosengren said in response to a question from the audience following a speech at a financial regulation conference hosted by the Norges Bank, the Norwegian central bank.

Rosengren, who opposed each of the Fed's three interest rate cuts this year, said he personally would not be inclined to opt for negative rates. His speech focused on banking regulation, not U.S. monetary policy or the economic outlook.

(Reporting by Gwladys Fouche in Oslo; Writing by Dan Burns in New York Editing by Chizu Nomiyama)

((Daniel.Burns@thomsonreuters.com;))

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