Fed's Collins: Will Support September Rate Hike if Inflation Remains High

BlockBeats News, August 12th, according to the Financial Times, Fed's Collins stated that the escalating Iran conflict has increased the cost of living, and the U.S. poverty population is struggling to make ends meet. She warned that the Fed may need to raise interest rates to curb inflation. Collins noted that businesses and households in the U.S. Northeast are feeling the squeeze of inflation, which has been above the central bank's 2% target for over five years. She pointed out: "Almost every time I talk (to businesses), I hear (about price) issues." She added, "Among low- and middle-income families, I increasingly hear about the challenges they face... such as making ends meet. Energy prices are indeed hard to bear, especially in our region."

Collins currently does not have a voting role in the FOMC, she supported keeping rates unchanged in July and believes that the current rate level is "somewhat restrictive," and that "this will gradually bring down expected inflation rates." However, she stated that if economic data indicates a need for a rate hike, she would be willing to support an increase as early as September. She said, "I do believe that the economic conditions in the coming months might require a more restrictive policy, in which case I am prepared to raise rates."