Boston Fed's Collins Sees Mixed US Inflation Readings

Boston Federal Reserve President Susan Collins said that recent US inflation readings are 'mixed' and not necessarily a cause for interest rate hikes. The Personal Consumption Expenditures Price Index rose at a 3.7% annual rate in July, but Collins noted that this was driven by various factors, including portfolio management fees and import tariffs.

Collins cited research from the Boston Fed pointing to improved productivity as a reason for easing price pressures. She also mentioned that inflation linked to import tariffs may have almost run its course.

The overall inflation reading was 'maybe a bit higher' than Collins expected, but she expressed confidence in her modal scenario of gradual disinflation under current policy interest rates.