Fed is ‘running the economy hot,’ official warns

Published January 9, 2017 11:00pm ET



A top Federal Reserve official warned Monday that the central bank is at risk of delaying raising interest rates for too long and recommended that it begin shrinking its $4.5 trillion balance sheet.

Eric Rosengren, the president of the Federal Reserve Bank of Boston, said Monday in an interview with Reuters that the Fed is “already running the economy hot,” citing December’s 4.7 percent unemployment rate as evidence.

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