Boston Fed’s Collins Says September Rate Hike Could Be On The Table
By CU Today Staff —
BOSTON--Federal Reserve Bank of Boston President Susan Collins said she would be prepared to support an interest rate increase as soon as September if inflation remains elevated and economic conditions warrant tighter monetary policy, Reuters reported.
Collins told the Financial Times that the war in Iran has intensified cost-of-living pressures, with lower-income Americans in particular struggling to make ends meet, according to Reuters. The added inflation pressure could force the Fed to consider further tightening despite broader concerns about the economy.
“I do see the possibility that economic conditions in the coming months will require tighter policy, and I would be prepared to raise rates in that context,” Collins told the FT, according to Reuters. She said she would be open to backing a September increase if incoming economic data supported such a move.
Reuters noted that Collins is not currently a voting member of the Federal Open Market Committee, which sets the Fed’s benchmark interest rate. Her comments nevertheless underscore the possibility that persistent inflation could put rate increases back on the table after policymakers assess economic and price data heading into the September meeting.
Originally reported by CU Today.