{
  "id": 3797137,
  "title": "Fed’s Collins says PCE does not change restrictive policy view",
  "url": "https://urgent.news/2026/08/27/feds-collins-says-pce-does-not-change-restrictive-policy-view",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-27T18:33:09.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/feds-collins-says-pce-does-not-change-restrictive-policy-view-202608271833"
  },
  "original_language": "en",
  "account": "Fed President Susan Collins shared insights on Thursday during the Jackson Hole Symposium, stating that the latest PCE inflation report does not adjust the Fed's restrictive monetary policy view. Collins further noted that the surge in US bond yields remains aligned with the Fed's objective of price stability. During an interview with The Wall Street Journal, Collins hinted at the possibility of a rate hike if inflation falls short of expectations. The Personal Consumption Expenditures (PCE) report did not alter the Fed's expectation of implementing gradual disinflation through the current monetary policy. Market management fees have significantly impacted headline inflation figures, with market-based prices currently in line with the Fed's targets. The recent inflation data was mixed, with the headline figure exceeding expectations, but promising signs emerged in the details. The recent increase in bond yields still corresponds with price stability, rather than indicating an escalation in inflation expectations. Without new tariff and oil shock concerns, there are reasons to believe inflation will ease. Collins continues to monitor bond yields, but has not commented on Fed Chair Jerome Powell's potential intervention. The Federal Reserve (Fed) is responsible for setting monetary policy in the United States, with its primary objectives being price stability and full employment. The Fed primarily influences the economy through adjustments to interest rates. When prices rise too rapidly and inflation exceeds 2%, the Fed increases interest rates, raising borrowing costs and strengthening the US Dollar (USD). Conversely, if inflation falls below 2% or unemployment is too high, the Fed may lower interest rates to promote borrowing and weaken the US Dollar. The Fed convenes eight policy meetings annually, during which the Federal Open Market Committee (FOMC) reviews economic conditions and decides on monetary policy. The FOMC comprises twelve officials – seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four regional Reserve Bank presidents, serving one-year terms in a rotating manner. In exceptional circumstances, the Fed employs Quantitative Easing (QE), a non-standard policy tool used during crises or extremely low inflation periods. During the Great Financial Crisis in 2008, the Fed leveraged QE as its primary tool. QE entails the Fed injecting more Dollars into the economy and purchasing high-grade bonds from financial institutions to bolster credit flow. QE typically weakens the US Dollar, while Quantitative Tightening (QT) – the opposite of QE – strengthens the US Dollar by reducing the money supply.",
  "summary": "Boston Federal Reserve (Fed) President Susan Collins crossed the wires on Thursday as the Jackson Hole Symposium began. She said that the recent PCE inflation report does not change the view that policy is restrictive and will lead to gradual disinflation.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}