Federal Reserve

Boston Fed's Rosengren economy needs 'modest, gradual tightening now'

Eric Rosengren
Wendy Maeda | The Boston Globe | Getty Images

Boston Fed President Eric Rosengren said on Friday that he believed interest rates should be raised gradually now and warned that a fall in the unemployment rate below its sustainable level could derail economic recovery in the United States.

"By 2019, I expect the unemployment rate to have declined below 4.5 percent. While I have a long track record of advocating for policy that supports robust labor market conditions, that is below the rate that I believe is sustainable in the long run," Rosengren said in a statement.

Rosengren dissented at this week's Federal Reserve rate setting meeting that left interest rates unchanged. He and tw