Boston Fed Rosengren Wants 4 Rate Hikes in 2017

March 29, 2017 Share Print 0

If Boston Federal Reserve President Eric Rosengren gets his way, the central bank will be a lot more aggressive this year with raising interest rates.

In a speech Wednesday, Rosengren said he believes four rate hikes this year are appropriate, with the Federal Open Market Committee raising its short-term target rate a quarter point “at every other” meeting this year.

The committee already has one increase under its belt, approved at the March meeting. Officials then indicated that two more hikes probably will be appropriate in 2017.

However, Rosengren said four moves should be the Fed’s “default” position unless the data dictate that a shift is necessary.

“Importantly, this would still be a fully data-dependent approach, not a preset path, as it would hinge on the incoming data — but the base case would be four tightenings, reflecting the strength of the economy that I believe justifies more regular normalization of interest rates,” Rosengren said, according to a text of a speech he was to deliver Wednesday morning to the Boston Economic Club.

Though Rosengren does not have a vote this year on the FOMC, he still gets to participate in deliberations.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.