Speaking to the Wall Street Journal about raising interest rates, he speculated that the bank is "two years away from when that likely is going to become a much more important question."
"We still have a lot of labour market slack, the [labour force] participation rate is still quite low relative to prior to the pandemic, and the unemployment rate is still at 6.0 percent. So we need to get rid of the slack, have a sustained inflation rate, before we need to worry about raising rates," Rosengren explained. However, he expressed optimism concerning the economic recovery and said he expects the unemployment rate "to get quite low by the end of the year."
"With labour-market slack still significant, and inflation still below the Federal Reserve’s 2.0 percent target, my perspective is that the current highly accommodative stance of monetary policy is appropriate,” the official asserted.