The expectation from the Federal Reserve's own forecasts of four quarter-point interest rate hikes in 2016 is a "reasonable estimate," but such a forecast does have "downside risks," said Boston Fed President Eric Rosengren on Wednesday. These risks reflect weakness overseas and only "limited data" supporting the Fed's forecast that inflation will rise to the its 2% target by 2018, Rosengren said in a speech to the Greater Boston Chamber of Commerce. The Boston Fed President is a voting member of the Fed's policy committee this year. Rosengren is often on the dovish side of Fed interest-rate policy debates although he strongly supported the first rate hike in December.
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