Fed's Collins says more rate hikes are coming, reports

Boston Federal Reserve President Susan Collins stated on Friday that the US central bank may need to raise interest rates more than anticipated due to high inflation. Speaking to Bloomberg Television, Collins said, "I think it’s clear the direction that monetary policy needs to go and I would think that soon some additional firming, tightening of policy is appropriate."

Recent inflation data has shown signs of rising price pressures spreading throughout the economy, leading Collins to believe that a tighter policy path may be necessary, even more so than she had initially anticipated. While the Federal Reserve is expected to raise its benchmark interest rate, currently between 3.75% and 4.00%, at its December 8-9 policy meeting, traders and investors are anticipating a quarter-percentage-point increase.

However, Fed Governor Christopher Waller suggested a half-percentage-point move earlier in the week. Collins emphasized that her "best-case scenario" is a cautious adjustment of policy, and acknowledged that there could be scenarios where her expectations may change. She reiterated that the key objective of the Federal Reserve is to deliver price stability, even if it means some short-term challenges for the housing sector.