Futures markets are wrong, and the Federal Reserve likely should hike rates sooner than they imply, Boston Federal Reserve President Eric Rosengren said Monday.
In prepared remarks for a speech in Boston, Rosengren — a Federal Open Market Committee voter and historically one of its dovish members — also said markets are too slow in pricing in rate hikes, and that their path of hikes is too low.
"A weak forecast doesn't seem to explain the path expected for the funds rate," he said in prepared remarks. "As I see it, the risks seem to be abating that problems from abroad would be severe enough to disrupt the U.S. recovery. Financial-market volatility has fallen, and most economic forecasts do not reflect expected large spillovers from continued headwinds from abroad."