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Boston Fed President Offers Perspective on Economic, Cyber Risks
On Monday, April 4, 2016, Federal Reserve Bank of Boston President and CEO Eric Rosengren offered his assessment of economic and cyber risks. On the economic front, Mr. Rosengren stated the financial markets may be underestimating the growth trajectory for the Fed Funds Rate. While global economic instability earlier in the year—arising from China and Europe—had caused the futures market to assign no more than a 0.25 point rate increase this year, he believes more recent economic data would suggest a return to “gradual tightening sooner than is implied by the financial-market futures.”
Turning to cyber risks, Mr. Rosengren is less optimistic. With more financial transactions being conducted over the internet and through mobile devices, he believes cyber criminals will test and take advantage of any weak points in the network. He is also concerned about fintech companies and whether they are focusing enough on cybersecurity as compared to customer convenience. Mr. Rosengren generally called on banking institutions to remain vigilant in keeping their technology secure, and he said the Boston Fed would continue to be active in this area.