Boston Fed President Susan Collins stated that inflation remains too high and is broadening, signaling that additional policy tightening is warranted. While she emphasized a need for careful adjustments, she noted that the Fed may ultimately need to raise rates more than currently expected.
Bullish
🤖 75%
Boston Fed President Collins said inflation is too high and broadening, that some additional policy tightening is warranted soon, and that the Fed may have to raise rates more than expected. A hawkish signal from a voting-era regional president supports expectations of higher US rates, which is positive for the dollar. She gave no precise rate path, limiting the force of the signal.
Catalysts
- ▲ Collins says inflation is too high and appears to be broadening
- ▲ Collins: some additional policy tightening warranted soon; Fed may have to raise more than expected
Risk Factors
- ▼ Collins does not say how high or fast rates should move, calling pace and destination unclear
- ▼ She sees financial markets stable and functioning well, and some firms expect to hire more