Federal Reserve's Collins: Rate hike will help inflation return to target

Odaily News: Boston Fed President Collins said she supported the Federal Reserve's decision to raise interest rates last week, stating that the move will help push inflation back down to the central bank's 2% target. Collins wrote: "A modest increase in the federal funds rate will help ensure that inflation returns to target on a sustained basis. As labor market conditions improve, monetary policy can focus on restoring price stability in a timely manner—especially after five and a half years of elevated inflation."

Collins does not have a vote on monetary policy decisions this year, and she said the "probability has increased" of a scenario in which inflation remains "significantly above 2%." (Jinshi)