Boston Fed’s Rosengren economy needs ‘modest, gradual tightening now’

Eric Rosengren

Boston Fed President Eric Rosengren said on Friday that he believed interest rates should be raised gradually now and warned that a fall in the unemployment rate below its sustainable level could derail economic recovery in the United States.

“By 2019, I expect the unemployment rate to have declined below 4.5 percent. While I have a long track record of advocating for policy that supports robust labor market conditions, that is below the rate that I believe is sustainable in the long run,” Rosengren said in a statement.