Fed's Rosengren Says Market Is Too Pessimistic on Rate Path
- U.S. economy remains `fundamentally sound' despite slow Q1
- Rate path envisioned by markets would risk high inflation
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The market’s outlook for interest rates is too dovish for one of the Federal Reserve’s more dovish policy makers.
Federal Reserve Bank of Boston President Eric Rosengren said he and many private-sector economists envision a “much healthier U.S. economy” than the forecast implied by financial markets, where investors expect the Fed to raise rates by about one-quarter percentage point a year over the next three years.