KONTAN.CO.ID - WASHINGTON. Federal Reserve Bank of Boston leader Susan Collins said Thursday it seems likely that the central bank will raise rates one more time this year and added that financial sector stress has likely taken some pressure off the Fed to go further than that. “Inflation remains too high, and recent indicators reinforce my view that there is more work to do to bring inflation down to the 2% target associated with price stability,” Collins said in the text of a speech to be delivered before a gathering of the National Association for Business Economics. Collins said she supported the Fed’s decision last week to raise its overnight target rate by 25 basis points to between 4.75% and 5.00%. Citing central bank forecasts that pointed to one more quarter percentage point increase this year, Collins said she saw that projection as “as reasonably balancing the risk of monetary policy not being restrictive enough to bring inflation down, and the risk that activity slows by more than needed to address elevated price pressures.”
Fed's Collins Leans Toward One More Rate Hike Then Hold for Rest of Year
KONTAN.CO.ID - WASHINGTON. Federal Reserve Bank of Boston leader Susan Collins said Thursday it seems likely that the central bank will raise rates one more time this year and added that financial sector stress has likely taken some pressure off the Fed to go further than that. “Inflation remains too high, and recent indicators reinforce my view that there is more work to do to bring inflation down to the 2% target associated with price stability,” Collins said in the text of a speech to be delivered before a gathering of the National Association for Business Economics. Collins said she supported the Fed’s decision last week to raise its overnight target rate by 25 basis points to between 4.75% and 5.00%. Citing central bank forecasts that pointed to one more quarter percentage point increase this year, Collins said she saw that projection as “as reasonably balancing the risk of monetary policy not being restrictive enough to bring inflation down, and the risk that activity slows by more than needed to address elevated price pressures.”