A Fed hawk now sees less risk of the economy overheating

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A Fed hawk now sees less risk of the economy overheating
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Fed's Rosengren backs rate-hike pause potentially over 'several' meetings

During the last few years, Boston Federal Reserve President Eric Rosengren has been one the most strident hawks at the U.S. central bank, urging continued interest-rates hikes.

The Boston Fed president, who is a voting member of the FOMC this year, was not more precise about the timing of the pause. The FOMC meets every six weeks; the next meeting in March 19-20. Some financial stability risks — a key concern to Rosengren — “have been reduced,” he said. Investor “ebullience” has been tempered by the recent financial market volatility, he added.

Rosengren said he forecast a growth rate this year somewhat above 2% without much risk of higher inflation.Rosengren said there seemed to be heightened risks to his outlook.

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