Fed Officials Warn Higher Inflation May Persist Without Tighter Policy

Federal Reserve Bank of Boston President Susan M. Collins reaffirmed her support for last week's interest rate hike, citing ongoing price growth and strong labor market conditions.

Collins backed the Federal Open Market Committee's decision to raise interest rates by 25 basis points, emphasizing that monetary authorities have room to prioritize stabilizing consumer prices.

She noted that elevated inflation poses a risk of persisting above the Fed's 2% target without firm policy intervention and that taking steps toward a slightly more restrictive policy setting is necessary to ensure inflation returns durably to target levels.