Rosengren in Montreal:
- It's prudent to continue with gradual policy tightening
- Benefits of gradual approach include longer recovery
- Already-tight labor market likely to tighten further
- Wages not rising as fast as may have been expected
Hawkish stuff from Rosengren on the weekend.
"Failing to respond to very tight labor markets with rates remaining negative in real terms could potentially risk unnecessarily shortening the economic recovery," Rosengren said.
