The Fed: Fed’s Rosengren backs ‘regular and gradual’ interest-rate hikes

Boston Fed President Eric Rosengren won’t be a voting member of the central bank’s interest rate policy committee until 2019.

Boston Fed President Eric Rosengren on Wednesday came down on the side of further interest-rate hikes, saying they would be a form of insurance against the possibility of an overheated economy.

Current economic trends suggest an economy “that risks pushing past what is sustainable,” Rosengren said in a speech to The Money Marketeers of New York University. This could result in higher asset prices, or inflation well above the Fed’s 2% target, he warned.

“Steps lowering the probability of such an outcome seem advisable — in other words, seem like insurance worth taking out at this time,” he said.

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