Fed’s Collins: More restrictive policy should help inflation return to 2%
Boston Federal Reserve (Fed) President Susan Collins said in a LinkedIn post on Tuesday that she supported last week’s interest-rate hike and sees a somewhat more restrictive policy stance as appropriate to bring inflation sustainably back to the Fed's 2% target.
Fed President Susan Collins supports the recent interest rate hike, stating that a more restrictive policy stance is necessary to bring inflation back to the Fed's 2% target. She now sees an increased likelihood of future scenarios where inflation remains notably above 2%. While upward risks to inflation have increased, labor market conditions appear stronger overall. With a better labor market situation, monetary policy can focus on achieving timely price stability, following five and a half years of excessive inflation.
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