Liftoff went well, Federal Reserve Bank of Boston President & Chief Executive Officer Eric S. Rosengren told the Greater Boston Chamber of Commerce Wednesday.
"The initial increase in short-term rates was rather uneventful," Rosengren said, according to prepared text released by the Fed. "The Federal Reserve's target rate moved as expected, and the effective federal funds rate has largely traded within our band with the exception of a single day at year-end. Other short-term rates have moved as expected, and there was little change in long-term rates."
Going forward, rate hikes will be data-dependent and hikes are expected to be gradual. "My hope is that the economy continues to improve, so that further normalization is appropriate," he said.
Foreign economies, the domestic economy and inflation need to be watched closely, Rosengren stated.
"Further tightening will require data continuing to be strong enough that growth will be at or above potential, so that Federal Reserve policymakers can be confident that inflation will reach our 2 percent target," he said.
