Fed official repeats call for gradual interest-rate hikes

Montreal

FEDERAL Reserve Bank of Boston President Eric Rosengren stepped up his argument to keep the US central bank on track for additional gradual interest-rate increases, warning against being too sensitive to short-term economic data.

Answering questions from the audience after delivering a speech in Montreal, Mr Rosengren said inflation will probably be "much closer to 2 per cent" a few months into 2018 as the impact fades from notable pricing changes for mobile phones and certain pharmaceuticals that have helped keep levels low this year.