Boston Fed President Eric Rosengren said in a speech on Monday that the U.S. economy was strong enough for further interest rates.

"The outlook is strong enough to engender further decline in the unemployment rate, even with some gradual normalization of interest rates," he said.

Rosengren noted that markets were too pessimistic regarding the Fed's monetary policy.

"While I believe that gradual federal funds rate increases are absolutely appropriate, I do not see that the risks are so elevated, nor the outlook so pessimistic, as to justify the exceptionally shallow interest rate path currently reflected in financial futures markets," Boston Fed president said.

Rosengren is a voting member of the Federal Open Market Committee (FOMC) this year.