Speaking in Maine
Boston Fed's Rosengren is speaking in Maine. His comments are largely what you might expect given the current environment and expectations for the Fed hike in December. Rosengren is a current voting member in 2016. He will not vote in 2017.
- Probably will be appropriate to tighten policy in December
- Premature to know new fiscal policy
- Much more accommodative fiscal policy would lead to more rapid rate hikes
- Expects wages and salaries to continue rising
- The performances abroad provide the biggest threat to Fed forecast
- He prefer Fred to tighten gradually
- Sees overshooting risk if US jobless falls further
- Must consider risks of waiting too long to hike
- Raising rates too fast could threaten the recovery
- Did not dissent in November due to statement change
