Home›Bonds & Rates›Central Banks›Susan Collins says PCE data does not change Fed’s rest…

Susan Collins says PCE data does not change Fed’s restrictive stance

Collins also indicated a rate hike would be warranted if inflation disappoints, framing the Jackson Hole remarks around continued gradual disinflation.

Reported · Written up by our desk · Central Banks

Boston Federal Reserve President Susan Collins said the latest PCE inflation report does not alter her view that US monetary policy remains restrictive and is expected to produce gradual disinflation, speaking as the Jackson Hole Symposium began, according to FXStreet.

Collins added in an interview with The Wall Street Journal that the Fed would have grounds to raise rates if inflation underperforms, linking the restrictive policy outlook to continued inflation sensitivity.

The remarks came in the context of the Fed’s dual mandate of price stability and full employment, where adjustments to interest rates are presented as the primary tool for shaping economic conditions and influencing the US dollar.

FXStreet also outlined how the Fed’s policy path can be reassessed across its scheduled meetings, and how nonstandard tools like quantitative easing are generally associated with crisis periods when inflation is extremely low.

More like this

Sources