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Friday, September 09, 2016

Fed's Rosengren speaking on his economic forecast in Boston, Sept 9, 2016

  • Sees 'increasingly two sided' risks to economic forecast
  • Gradual policy tightening likely to be appropriate
  • Sees risks to overshooting on economy's growth
  • US has proven relatively resilient to shocks from abroad
  • Low market volatility, strong stock pries show resilience on US economy
  • Modest wage pressures consistent with tightness in labor market
  • Labor market could well exceed full employment in 2017
  • Sees +2% GDP growth over next two quarters
This is hawkish stuff for someone who is often a dove.

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