wricaplogo

Rosengren, Eric on 2017 February 15 at 13:10

It is my view that it will likely be appropriate to raise short-term interest rates at least as quickly as suggested by the Fed’s current SEP median forecast, and possibly even a bit more rapidly than that forecast.

With the economy at or approaching both elements of the Federal Reserve’s dual mandate (price stability and maximum sustainable employment), it is my view that it will likely be appropriate to raise short-term interest rates at least as quickly as suggested by the Fed’s current SEP median forecast, and possibly even a bit more rapidly than that forecast. Importantly, if GDP is growing faster than potential and we reach both elements of the dual mandate, the Federal Reserve risks “overshooting,” potentially jeopardizing the very significant progress of the U.S. economy since the financial crisis. Rosengren, Eric

New York Association for Business Economics

More From:

See Also: