Fed's Rosengren Favors Three More 2017 Hikes to Foil Overheating
- Sees economy and unemployment on ‘unsustainable’ pace
- Balance sheet wind-down appropriate after one more rate move
Rivlin Sees Fed Staying on Track Despite Uncertainty
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Federal Reserve Bank of Boston President Eric Rosengren urged his policy-making colleagues to raise interest rates three more times this year and consider starting to shrink the central bank’s balance sheet after their next hike to avoid creating an “over-hot economy.”
Rosengren said he -- along with most economists in the Blue Chip Economic Indicators survey -- expects above-potential growth over the next year, pushing unemployment even farther below its lowest sustainable level. Unemployment fell to 4.4 percent in April, already under his 4.7 percent estimate for full employment.