Boston Fed President Susan Collins supports last week’s rate hike and believes that somewhat tighter monetary policy will help bring inflation sustainably back to the 2% target. She writes this in a LinkedIn post highlighted by Bloomberg.
Collins also sees an increased risk that inflation will remain clearly above 2%. At the same time, she points out that the labor market is on firmer footing, which in her view allows monetary policy to focus more on restoring price stability.
The Fed raised its policy rate by 25 basis points last week. The median forecast points to another hike this year, the news agency writes.
