Rosengren says Fed should continue gradually raising rates

The Federal Reserve should continue to raise rates at a gradual pace, Boston Fed President Eric Rosengren said Friday.

"Gradually increasing over the course of this next year makes sense," Rosengren told CNBC's Steve Liesman on "Squawk Box."

Rosengren's comments come ahead of the Fed's monetary policy meeting scheduled for later this month. The central bank is largely expected to raise rates a quarter point at its September meeting.

The Fed has already raised rates twice this year.

Rosengren said in a presentation released Thursday that U.S. fiscal and monetary policy makers are not adequately prepared to face an economic downturn in the future. "More attention should be given to establishing appropriate policy buffers to mitigate future shocks," Rosengren says.

Existing policy buffers, including fiscal, monetary and banking regulations, "may not be sufficient to offset future shocks, reducing the capacity available to policymakers to insulate the economy from future adverse shocks," he said.

This is breaking news. Please check back for updates.

—Reuters contributed to this report.

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