Boston Fed President Eric Rosengren in Vermont
- Sees US growth above 2% for the rest of the year after weak Q1
- Expects US consumers to re-emerge in Q2
- Fed should consider shrinking balance sheet after the next hike
- Suggests shrinking balance sheet very gradually
- Must avoid creating 'over-hot' economy
- Labor market has become tight
So the Fed has two speeds: Gradual and very gradual.
I don't think you would find too many Americans worried about an 'over-hot' economy. They'd like to see a 'hot' economy first, or even a 'warm' one.
Rosengren will take questions from the audience after his speech.
