NEW YORK Skepticism among investors will not alone dissuade the Federal Reserve from raising interest rates when necessary, even while the U.S. central bank monitors such market expectations and does not intend to make surprise policy changes, Boston Fed President Eric Rosengren said on Wednesday.
Market expectations "will not stop" a rate hike, he told a luncheon of economists and investors, adding that while European elections this year could be disruptive he does not expect a "huge shock" to the U.S. economy.
Futures markets imply traders see two or three rate hikes this year. Those expectations have edged up this week as Fed Chair Janet Yellen testified before Congress and opened the door to a policy tightening in the next few months.
(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)