Fed’s Rosengren says 2022 rate hike in play as job market heals

Close watch: A trader on the floor of the New York Stock Exchange keeps an eye on prices. Financial markets await more announcements by the Federal Reserve on interest rates. ― AFP

WASHINGTON: The United States Federal Reserve (Fed) might consider an interest-rate hike from near zero as soon as late 2022 as the labour market reaches full employment and inflation is at the central bank’s goal, Fed Bank of Boston president Eric Rosengren said.

“The criteria is that we have a sustainable inflation rate, that’s 2% or above, and that we’re at full employment,” Rosengren said in a broadcast interview with Yahoo Finance. “I do expect that it’s quite possible that we will see that by the end of next year, but it does depend on whether the economy progresses as strongly as I’m expecting.”