Fed could keep U.S. rates rock-bottom into 2016: Rosengren

Tue Nov 5, 2013 8:52am EST

The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks during the ''Hyman P. Minsky Conference on the State of the U.S. and World Economies'', in New York, April 17, 2013. REUTERS/Keith Bedford

The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks during the ''Hyman P. Minsky Conference on the State of the U.S. and World Economies'', in New York, April 17, 2013.

Credit: Reuters/Keith Bedford

(Reuters) - The Federal Reserve could well keep U.S. short-term interest rates near zero into 2016 if the economy fails to pick up steam, a top U.S. central banker said on Tuesday, adding he is eyeing gross domestic product growth of 3 percent as a goal.

"It depends on how the economy evolves," Boston Fed President Eric Rosengren said on CNBC television.

"You could easily imagine if we have relatively slow growth in the overall economy, even though it picks up from where we are now, that it could be 2016," he said of interest rates. "You certainly need to have growth of 3 percent or faster if you wanted to be seeing short-term rates rising at that point."

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)

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