Boston Fed President Eric Rosengren in Vermont

  • Sees US growth above 2% for the rest of the year after weak Q1
  • Expects US consumers to re-emerge in Q2
  • Fed should consider shrinking balance sheet after the next hike
  • Suggests shrinking balance sheet very gradually
  • Must avoid creating 'over-hot' economy
  • Labor market has become tight

So the Fed has two speeds: Gradual and very gradual.

I don't think you would find too many Americans worried about an 'over-hot' economy. They'd like to see a 'hot' economy first, or even a 'warm' one.

Rosengren will take questions from the audience after his speech.