Collins Leaves Door Open for September Rate Hike Amid Elevated Inflation

Federal Reserve Bank of Boston President Susan Collins has left the door open for an interest rate hike in September, citing elevated US inflation. The comments come after relatively moderate July inflation data led markets to scale back expectations of a Federal Reserve rate increase next month.

Collins told the Financial Times that she would be prepared to support a rate increase as early as September if economic data did not indicate that tighter monetary policy was necessary. 'I see a possibility that economic conditions in the coming months will require tighter policy,' she said. 'In those circumstances, I would be ready to raise interest rates.'

Collins also highlighted that cost-of-living pressures are still being felt by lower-income households, with the war in Iran exacerbating these issues.