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Federal Reserve Official Says Iran War Pushed Her Toward Supporting Rate Hike
Susan Collins said supply shocks from the Iran war and higher energy costs could keep inflation above the Fed’s 2% target.
- On Monday, Federal Reserve Bank of Boston President Susan Collins supported last week's rate hike to about 3.9%, citing stubbornly high inflation and August's renewal of combat in the Middle East.
- Last Wednesday, Fed Chairman Kevin Warsh led the central bank in lifting interest rates for the first time in three years, aiming to cool borrowing and spending without harming labor markets.
- Collins noted that improved hiring data suggests the economy can withstand higher borrowing costs, though businesses across her district, including Massachusetts and Vermont, continue expressing concern about high operational expenses.
- Chicago Fed President Austan Goolsbee warned that the central bank may have to cause "economic pain" in the form of higher unemployment to combat persistent supply shocks and bring inflation to the 2% target.
- Collins penciled in a second rate hike for later this year, while she expects the Federal Reserve will keep borrowing costs unchanged next year as the committee works toward its inflation target.
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LancasterOnline+4 Reposted by 4 other sources
Federal Reserve official says inflation persistence led her to support interest rate hike
A top Federal Reserve official says that stubbornly high inflation and the renewal of combat in the Middle East in August were key reasons she supported raising borrowing costs last week, when she also penciled in a second rate hike…
·Lancaster, United States
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Federal Reserve official says Iran war pushed her toward supporting rate hike
A top Federal Reserve official said Monday that the renewal of combat in the Middle East in August was a key reason she supported raising borrowing costs last week, when she also penciled in a second rate hike for later this year. Susan Collins, president of the Federal Reserve Bank of Boston, said in an interview with The Associated Press that she agreed with the Fed’s decision Wednesday to lift its benchmark interest rate by a quarter-point to…
·Albuquerque, United States
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Total News Sources11
Leaning Left4Leaning Right2Center4Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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