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.