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CNBC EXCLUSIVE: CNBC EXCERPTS: CNBC’S STEVE LIESMAN SITS DOWN WITH ERIC ROSENGREN, PRESIDENT & CEO OF THE FEDERAL RESERVE BANK OF BOSTON, TODAY ON CNBC’S “STREET SIGNS”

WHEN: TODAY, WEDNESDAY, OCTOBER 19TH AT 2PM ET

WHERE: CNBC’S “STREET SIGNS

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Eric Rosengren, President & CEO of the Federal Reserve Bank of Boston, today on CNBC’s “Street Signs.” All references must be sourced to CNBC.

Fed's View of the Economy

Rosengren on Monetary Policy:

"I would note that we've already done quite a bit in the last two meetings and that the economy still looks like it's going to grow very slowly. Whether we need to do more or not partly depends on how the economy actually unfolds but certainly if the economy were to be weaker than most people are forecasting, that would certainly be cause for doing additional monetary policy."

Rosengren on the Unemployment Forecast:

"President Evans has talked specifically about rather than having a calendar date, having targets before we start taking away some of the accommodation. I actually would be in favor of that. I think we have to get an agreement on what those targets would actually be, both on employment and inflation. But I do think it's somewhat artificial to be focused just on calendar time, and really what we want are good economic outcomes and that's probably what we should be targeting."

Rosengren on Target Points:

"I think 2 and a half or 3 percent inflation would certainly be grounds for doing, taking away some of the accommodation. And I would say an unemployment rate down to 7 percent, which some people have talked about, would certainly be a reason to remove some of the accommodation. So I think we would have to negotiate exactly what the exact targets would be, but I think conceptually that is not an unreasonable way to go."

Rosengren on Economic Forecasts:

"Most economic forecasts expect that we'll start growing more quickly next year. I think that's a good baseline forecast, that's forecast as well. So at two and a half, three percent next year I think would be quite reasonable. But I would say the risks still remain weighted towards the downside."

Rosengren on Europe:

"Most of the banks don't have huge direct exposure to the European situation. The money market funds have been pulling back from a lot of their exposure. They've been doing that over the last six months. Nevertheless, if there were serious problems to erupt in Europe, we would not be insulated from those problems."

Rosengren on Higher Capital:

"What I would highlight is there are a number of actions that we have taken as a result of the crisis that have yet to be fully implemented. So for Dodd-Frank, we're still writing a lot of the rules. Basel III is still a proposal. It's actually not fully implemented. So as those various proposals become implemented we will get much higher capital than we currently have."

Rosengren on Infrastructure:

"As I highlighted during the conference, there's still more that we can do for the infrastructure. You mentioned mutual funds, money market mutual funds, that's one area where I think there can be more work done. I think there's more work to be done on the international front. So if you're a global bank, given that legal requirements are very different across countries, that's something that has to be ironed out as well."

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