Boston Fed President Eric Rosengren said in a speech on Thursday that the U.S. economy would expand faster in the second quarter after a weak growth in the first quarter. He noted that headwinds from abroad diminished.

Rosengren pointed out that it was appropriate to continue to hike interest rates if the U.S. economy continued to improve.

"In my view, the market remains too pessimistic about the fundamental strength of the U.S. economy, and the likelihood of removing monetary accommodation is higher than is currently priced into financial markets based on current data," Boston Fed president said.

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