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Fed’s Rosengren Hangs On to Hiking Bias Despite Rising Risks

  • Boston Fed chief more optimistic than FOMC on growth, prices
  • Shaky growth in China and Europe represent biggest threat
Eric Rosengren on March 26.
Eric Rosengren on March 26.Photographer: Paul Yeung/Bloomberg

Federal Reserve Bank of Boston President Eric Rosengren still thinks the central bank’s next move for interest rates is more likely to be a hike than a cut. He just won’t be surprised if that turns out wrong.

In a March 22 interview Rosengren said he’s “more optimistic” over the outlook for economic growth and inflation than most of his colleagues on the central bank’s policy-setting Federal Open Market Committee. If that turns out to be right, he said, “it is possible the next move would be up.”