US central bank should raise rates four times in 2017, Fed's Rosengren says

The head of the regional US Federal Reserve Bank of Boston called for a faster pace of rate hikes than his colleagues in 2017.

In a speech in Boston on Wednesday, Eric Rosengren said: "The perception seems to be that the outcome of each FOMC meeting depends on nuances of incoming data, with the base case being no change in rates.

"My own view is that an increase at every other FOMC meeting over the course of this year could and should be the committee’s default."

"It is important to avoid creating an over-hot economy that could require a more rapid tightening of monetary policy -– which would place at risk the economic improvements seen to date."

According to the interest rate forecasts contained in the Federal Reserve's Summary of Economic Projections published on 15 March, the median projection from policymakers for rate hikes in 2017 was three.

As of 1927 GMT the yield on the benchmark 10-year US Treasury note was up by three basis points at 2.39%.