Rosengren sees rates becoming mildly restrictive

Unless risks materialize, Federal Reserve Bank of Boston President Eric Rosengren see rates being raised gradually until they are "mildly restrictive."

By raising rates slowly, it averts "a more forceful response" when risks arise, he told a gather in Dalton, Mass., Friday, according to text released by the Fed.

Rosengren said his views are consistent with those in the Summary of Economic Projections, which expects the federal funds rate target to rise to 3.4% in 2021. "Of course, if risks become more germane, a different path may be warranted," he noted.

rosengren-eric-bl — Eric Rosengren, president of the Federal Reserve Bank of Boston, looks on as mortgagees arrive at a foreclosure prevention workshop sponsored by the Federal Reserve Bank of Boston and the New England Ptriots Charitable Foundation at Gillette Stadium in Foxboro, Massachusetts, U.S., on Tuesday, Aug. 12, 2008. The number of foreclosures in the U.S. are "growing," Rosengren said in an interview with Fox Business News. Rosengren speaks as some investors are hoping the worst of home-price declines and defaults on home-loans are in the past. Photographer: Neal Hamberg/Bloomberg News

Gary Siegel

Managing Editor, The Bond Buyer

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