Federal Reserve's Collins: Currently Supports Holding Rates Steady, But Could Hike Soon If Inflation Doesn't Improve

Odaily News: Federal Reserve's Collins stated that she currently supports holding interest rates steady, but this stance depends on seeing more progress in inflation cooling and gradually moving toward the Fed's 2% target. Collins wrote: "To maintain the current target range for interest rates, we need continued evidence that inflation is indeed declining. If evidence of sustained disinflation does not emerge, I believe monetary policy should be tightened as soon as possible."

She noted that recent inflation data showing moderate underlying price pressures is "somewhat encouraging," but added that monthly data can be volatile. "Whether the recent improvement can be sustained remains to be seen." Collins said that tight interest rates combined with rising long-term yields should help alleviate some of the inflation pressure stemming from strong household and business consumption. She added that the impact of previous tariffs is expected to have largely faded, and the effect of rising oil prices on inflation should also begin to diminish. (Jinshi)