Boston Fed’s Collins Says More Rate Hikes May Be Needed to Curb Inflation
Summary
- Susan Collins, president of the Federal Reserve Bank of Boston, said additional interest-rate hikes may still be needed.
- Collins said inflation pressures remain above target and stressed that the Fed will continue taking steps to achieve price stability.
- Markets are watching how hawkish remarks from Fed officials could affect the future rate path and risk-asset markets, with upcoming consumer price index (CPI) data and employment indicators identified as key variables.
Forecast Trend Report by Period
Susan Collins, president of the Federal Reserve Bank of Boston, said additional interest-rate increases may still be needed, signaling the Federal Reserve could keep its tightening stance in place.
Walter Bloomberg reported on May 13 that Collins said the benchmark rate may need to rise further to ease inflation pressures.
Inflation pressures remain above the Fed’s target, she said.
Collins also stressed that the Fed will continue taking the steps needed to achieve its price-stability goal.
In the US, inflation has been slowing more gradually than expected, with higher energy prices and a resilient labor market cited as key reasons.
Markets are focused on how hawkish remarks from Fed officials could affect the path of interest rates and risk assets. Upcoming consumer price index, or CPI, data and labor-market indicators are key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.