Boston Federal Reserve President Susan Collins noted in a recent interview that the ongoing conflict involving Iran is intensifying the cost-of-living crisis, amplifying inflationary pressures on businesses and households in the northeastern United States.
Collins, who currently does not hold a voting position on the Federal Open Market Committee (FOMC), supported the committee's decision to maintain interest rates at their current level in July. She described the existing rate environment as "slightly restrictive," which she anticipates will lead to a gradual decline in inflation.
However, Collins indicated that if forthcoming economic data supports the move, she could endorse a rate hike as early as September. Regarding the latest non-farm payroll figures, she cautioned against overinterpreting the data, pointing out that the unemployment rate remains "relatively stable."
Collins emphasized that inflationary risks deserve more attention than the mixed signals from the labor market. "There is a lot to monitor," she said, adding that "inflation is still too high."
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