Boston Fed President Eric Rosengren said in a speech on Monday that the Fed could hike its interest rate sooner than expected by markets.

"If the incoming data continue to show a moderate recovery - as I expect they will - I believe it will likely be appropriate to resume the path of gradual tightening sooner than is implied by financial-market futures," he said.

Rosengren noted that the U.S. economy could withstand developments abroad, and financial market volatility subsided.

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