Boston Fed President Susan Collins said in a LinkedIn post on Tuesday that she supported last week’s interest-rate increase, and indicated that a more restrictive policy stance would be appropriate to return inflation to the Federal Reserve’s 2% target on a durable basis. She said she now sees a higher probability of outcomes in which inflation stays above 2%, pointing to increased upside risks.
Increased Upside Risks to Inflation
Boston Fed President Susan Collins said in a LinkedIn post on Tuesday that she supported last week’s interest-rate increase, and indicated that a more restrictive policy stance would be appropriate to return inflation to the Federal Reserve’s 2% target on a durable basis. She said she now sees a higher probability of outcomes in which inflation stays above 2%, pointing to increased upside risks.
Labour Market Strength and Policy Focus
Collins also said labour market conditions appear somewhat stronger overall. With the labour market on firmer footing, she said monetary policy can focus on a timely return to price stability, following five and a half years of inflation running too high.
