Federal Reserve official Collins said she is prepared to support a rate increase as early as September if inflation remains elevated. In remarks reported by the Financial Times, Collins warned that the Iran war has aggravated cost-of-living pressures and that poor Americans are struggling to make ends meet. She said businesses and households across the U.S. Northeast are feeling the squeeze from inflation that has exceeded the central bank's 2% target for more than five years. Collins, who currently has no vote on the FOMC, supported holding rates steady in July and described the current level of rates as "somewhat restrictive," expecting inflation to decline gradually. She added that energy prices are "truly unaffordable," especially in the region. However, she said she would be willing to back a rate hike as early as September if economic data point to the need. "I do think economic conditions in the coming months may call for more restrictive policy, and in that case, I am prepared to raise rates," she said.
Federal Reserve official Collins said she is prepared to support a rate increase as early as September if inflation stays elevated, according to the Financial Times.
Collins warned that the Iran war has aggravated living-cost pressures, leaving poor Americans struggling to make ends meet. She said businesses and households in the U.S. Northeast are being squeezed by inflation that has exceeded the central bank's 2% target for more than five years. "I hear about it in almost every conversation I have (with businesses)," she said. "Among middle- and low-income households, I increasingly hear about the challenges they face... like struggling to make ends meet. Energy prices are truly unaffordable, especially in our region."
Collins currently has no vote on the Federal Open Market Committee (FOMC). She supported holding interest rates steady in July and described the current level of rates as "somewhat restrictive," saying she expects inflation to decline gradually and sustainably. But she said she would be willing to raise rates as early as September if the data indicate a need: "I do think economic conditions in the coming months may call for more restrictive policy, and in that case, I am prepared to raise rates."
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