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FED’S COLLINS: INFLATION RISKS KEEP POLICY RESTRICTIVE Boston Fed President Susan Collins said current policy is “well positioned,” but emp…

FED’S COLLINS: INFLATION RISKS KEEP POLICY RESTRICTIVE Boston Fed President Susan Collins said current policy is “well positioned,” but emphasized rates may need to stay restrictive for an extended period—and could even rise if inflation persists. She warned that inflation remains the Fed’s top concern, with expectations potentially harder to anchor due to energy shocks linked to Middle East tensions. Collins said prolonged conflict increases both inflation and growth risks, making policy decisions more difficult, though the U.S. is better insulated from energy shocks than in the past. While she still sees room for cuts later, she stressed inflation is unlikely to ease this year and may only cool meaningfully in 2027.
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