Fed's Collins Says Rate Increase Warranted If Inflation Disappoints
· Business · Wall Street Journal, Economic Times
Boston Federal Reserve President Susan Collins stated that a rate increase would be warranted if inflation data fails to show the expected gradual decline. Speaking on the sidelines of an economic symposium in Jackson Hole, Wyoming, she described current inflation readings as mixed but expressed confidence in her modal scenario of disinflation. Collins noted that while headline rates were higher than anticipated, underlying factors suggest price pressures may ease. She emphasized that she remains prepared to support tighter monetary policy if the data does not align with the central bank's targets.
Why it matters
The potential for further US interest rate hikes influences global borrowing costs and investment sentiment in emerging markets like India.
Read the original report — Wall Street Journal
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