Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Interest Rates

News : Interest Rates

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Fed must hike rates in face of hot U.S. labor market: Rosengren

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/07/2017 | 05:54pm CET
File Photo: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York

MONTREAL (Reuters) - The Federal Reserve must respond to "very tight" U.S. labor markets by gradually raising interest rates or risk halting the economic recovery, a hawkish Fed official said on Saturday.

In prepared remarks that largely restated his views, Boston Fed President Eric Rosengren said he expects the labor market to improve further after U.S. unemployment dropped to 4.2 percent last month, its lowest level since 2001.

"Prudent risk management would argue for the continued gradual removal of monetary policy accommodation in order to minimize the risk of outcomes that might prematurely shorten the current economic recovery," said Rosengren, who was speaking at the International Atlantic Economic Conference in Montreal, adding he expects the U.S. economy will likely continue to grow above its potential.

"Failing to respond to very tight labor markets with rates remaining negative in real terms could potentially risk unnecessarily shortening the economic recovery," added Rosengren, who does not vote on policy this year but whose views often portend overall Fed policy.

The Fed has raised rates three times in less than a year and is expected to hike again in December. Below-target inflation has caused some more dovish Fed policymakers to want to wait.

(Reporting by Nelson Wyatt in Montreal; Writing by Jonathan Spicer in New York; editing by Diane Craft)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Interest Rates"
02/18Jittery U.S. bond market braces for supply wave
RE
02/16After weeks in lockstep, stocks and bonds go their separate ways
RE
02/15France Prioritizes Paying Debts as Rates Set to Rise, Finance Minister Says
DJ
02/15What inflation fears? Asia bond markets bet on regional rates staying low
RE
02/14Bonds plunge, stocks surge on spike in U.S. CPI data
RE
02/14Bonds plunge, global stocks surge on spike in U.S. CPI data
RE
02/14Bonds plunge, global stocks surge on spike in U.S. CPI data
RE
02/14ANALYSIS : Fed May Lift Rates With Confidence as Inflation Shows Signs of Life
DJ
02/14China's HNA bosses buy dollar bonds after S&P credit cut
RE
02/14Sweden's Riksbank Says Rates Will Go Up in 2018, But It Won't Act Hastily
DJ
Latest news "Interest Rates"
Advertisement