January 9, 2017 / 2:49 PM / 2 years ago

Fed's Rosengren: rate hike timing depends partly on fiscal policy

HARTFORD, Conn. (Reuters) - It is appropriate for the Federal Reserve to be raising rates, Boston Fed President Eric Rosengren said on Monday, but the exact timing depends on economic data, international conditions and what happens with fiscal policy.

U.S. stocks have been sharply up since the election of Republican Donald Trump, who is expected to cut taxes and has also promised infrastructure investment and other policies to boost economic growth. Consumer spending, which has been the engine behind the U.S. recovery, tends to be stronger when the stock market does well, Rosengren said, so the Fed will incorporate that into its forecasts.

Reporting by Ann Saphir; Editing by Chizu Nomiyama

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