The U.S. is close to a rate hike, Federal Reserve Bank of Boston President Eric Rosengren said in a published report this weekend.
"I want to be sensitive to how the data comes in, but I would say that most of the conditions that were laid out in the minutes, as of right now, seem to be . . . on the verge of broadly being met," Rosengren told the Financial Times.
According to minutes of its latest meeting, the Federal Open Market Committee wanted more signs of an economic rebound in the second quarter, continued betterment of the jobs market and a pickup in inflation.
While not all policymakers agree these conditions will be met by the time the FOMC meets next month, Rosengren, a voter, said the FOMC set a "relatively low threshold," which is close to being crossed.
Although April job growth was lower than the average for the first quarter, he said it was "well above" the level needed to raise rates. Also, inflation is creeping up as oil prices gain and the dollar slips. The core personal consumption expenditures rate year-over-year rate has climbed to 1.6%.
"Because we are closer to full employment and because we are closer to our inflation target I am more confident now that a more normalized situation makes sense," Rosengren told the paper.
