Boston Fed Chairman Pointed to A Rate Increase

Boston Fed Chairman pointed to a rate increase. Another one was added to the FED officials who predicted an increase in interest rates.

Boston Fed Chairman Eric Rosengren stated that if full employment is realized in the USA and inflation reaches the level targeted by the FED, the Fed may consider increasing interest rates at the end of 2022. Speaking in an interview with Yahoo Finance, Rosengren said, "The criterion here is sustainable inflation and full employment of 2 percent or more. I expect that we will see these by the end of next year. Of course, this will depend on whether the economic progress is as strong as I expected." Rosengren also touched upon the issue of asset purchases. Boston Fed Chairman Rosengren, who expects the US economy to grow by around 7 percent this year, noted that it is highly likely that the Fed will make progress that will allow it to cut its asset purchase program before the first part of next year.

Another Official Predicting an Interest Rate Increase

As a result of Rosengren's words, a new one has been added to the FED officials who predicted an interest rate increase next year. Previously, St. Louis FED Chairman James Bullard, Dallas FED Chairman Robert Kaplan and Atlanta Fed Chairman Raphael Bostic also used some expressions that there may be an interest rate increase for next year.