Boston Fed’s President Makes Case for Interest Rate Hikes
- 7 years ago
Boston Fed’s President Makes Case for Interest Rate Hikes
In an interview on Saturday at the Boston Fed’s annual conference, Mr. Rosengren said he favored raising the Fed’s benchmark rate later this year, and
that the rate should rise to about 2 percent by the end of 2018.
I would say particularly the natural rate of unemployment has tended to go up when we’ve
had high unemployment rates and go down when we’ve had low unemployment rates.
If at the end of the next year we were at the point where inflation was around 2 percent
and the unemployment rate was below 4 percent, I’d be concerned if we hadn’t moved to remove accommodation.
Unless the data turns out otherwise, based on what I’m expecting I would think that a rate increase by the end of the year would be appropriate.
In an interview on Saturday at the Boston Fed’s annual conference, Mr. Rosengren said he favored raising the Fed’s benchmark rate later this year, and
that the rate should rise to about 2 percent by the end of 2018.
I would say particularly the natural rate of unemployment has tended to go up when we’ve
had high unemployment rates and go down when we’ve had low unemployment rates.
If at the end of the next year we were at the point where inflation was around 2 percent
and the unemployment rate was below 4 percent, I’d be concerned if we hadn’t moved to remove accommodation.
Unless the data turns out otherwise, based on what I’m expecting I would think that a rate increase by the end of the year would be appropriate.