Fed’s Rosengren says it will likely be appropriate to resume gradual tightening sooner than market expects

By FXStreet Federal Reserve Bank of Boston President Eric Rosengren said Monday it will likely be appropriate to resume gradual tightening sooner than market expects given the resilience of the US economy.

Commenting on the economy, Rosengren said that financial market expectations of only a very slow removal of monetary policy accommodation could, in his view, prove “too pessimistic”.

“I personally expect that a stronger economy, at essentially full employment and with gradually rising inflation, will lead to more tightening than is currently priced into the futures market expectations for the next two years,” Rosengren said.

However, he quickly emphasized that his outlook still calls for a gradual pace of increases and that, as always, the path should depend on incoming economic data.
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Source:: FX Street