The three interest rate hikes projected in the Federal Reserve Summary of Economic Projections is a starting point for this year if the economy grows as projected, Federal Reserve Bank of Boston President and CEO Eric S. Rosengren said Wednesday.

"[I]t 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," Rosengren told the New York Association for Business Economics, according to prepared text released by the Fed. "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."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.