Comments by Boston Fed president Eric Rosengren
- But sees inflation moving "persistently" above Fed target
- That will justify continued rate hikes
- Would not be surprised if Fed estimates of neutral rate shift higher
- Labour market is tight and there is solid growth in the economy
- Inflation is at a target that gives the Fed a "good idea" of rate path
- Strengthening economy likely will need "mildy restrictive" policy in the future
Do note that Rosengren isn't on the voting board this year and his comments here echoes what he previously said on Friday here. Right now, the market isn't really looking ahead to 2019 just yet but expect that to change once we get more clues about a December rate hike.
That will be a big tell on how the Fed views policy into the next year, especially with plenty of risk factors still weighing - global trade tensions and emerging markets among the key worries in that regard.
