Fed’s Collins Says Gradual Rate Hikes Best to Manage Economic Risks
Susan Collins said a careful pace of rate increases can better balance high inflation and a stable labor market, as markets expect a December hike.
- On Saturday, Boston Federal Reserve President Susan Collins said she supports a steady pace of modest interest rate increases because that approach better manages economic uncertainties.
- Tighter monetary policy is coming because inflation is broadening, Collins said on Friday, suggesting the central bank may need to raise rates more than she initially expected.
- "A steady, gradual path seems appropriate to me at the moment," Collins told reporters in Boston, adding she remains open-minded about future policy adjustments.
- Financial markets expect the Fed to raise its 3.75% benchmark rate by a quarter percentage point at the December 8-9 meeting, though Fed Governor Christopher Waller suggested a larger half-percentage-point move.
- Stronger labor market data and persistent inflation have shifted expectations for policy rates next year, as Collins acknowledged that rising rates may weigh on demand more than anticipated.
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Fed's Collins says gradual rate hikes best to manage economic risks
The president of the Boston Federal Reserve (Fed), Susan Collins, said that a gradual path of interest increases will be appropriate to reduce inflation, while the labour market gains a solid basis without adding pressure on prices. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Fed's Collins says more rate hikes are coming, Bloomberg Television reports
NEW YORK — Boston Federal Reserve President Susan Collins said on Friday that tighter monetary policy is coming because of high inflation, in comments that suggested the US central bank may have to raise interest rates more than she initially expected.
The president of the Federal Reserve Bank of Boston believes that this approach allows for more effective management of economic uncertainties.
Collins reiterated that the direction of monetary policy is clear, but avoided specifying how quickly or to what extent the central bank will have to raise rates
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