US Market: Fed’s Collins Backs Rate Hike, Flags Persistent Inflation Risks
- On Tuesday, Boston Federal Reserve President Susan Collins expressed support for the central bank's decision last week to raise interest rates to the 3.75%-4.00% range, citing persistent inflation risks.
- Inflation remains notably above the 2% target, with supply shocks from the US-Israeli conflict involving Iran complicating efforts to stabilize prices through traditional monetary policy tools.
- CME FedWatch data shows markets are broadly split, with 53.1% of traders expecting another 25-basis-point increase when the Federal Open Market Committee meets in October.
- Treasury yields reacted sharply to the policy shift; the two-year Treasury note hit 4.76 percent as investors digested the rate increases and expectations for further hikes.
- European Central Bank executive board member Philip Lane warned on Tuesday that a "second wave of rising energy prices" is likely to keep inflation "higher for longer," signaling global pressure on policymakers.
20 Articles
20 Articles
A Fed Member Supported The Latest Rate Hike. She Says Chances Of Elevated Inflation Are 'Notably Higher'
"With the labor market on a better footing, monetary policy can focus on a timely return to price stability, especially after five and a half years of too high inflation," Boston Fed President Susan Collins said.
The Economic Times
Times of IndiaUS Market: Fed’s Collins backs rate hike, flags persistent inflation risks
Boston Fed President Susan Collins backed the Feds recent rate hike, citing persistent inflation risks and arguing that a somewhat more restrictive policy stance may be needed to bring inflation sustainably back to target.
Fed’s Collins Signals No Quick Relief on Inflation as She Backs Rate Hike
Boston Fed President Susan Collins backed last week’s rate hike and warned of higher odds that inflation stays above 2%. With the labor market stronger, she sees room for policy to focus squarely on price stability after years of elevated pressures. Supply shocks from Middle East conflict add complexity.
(New York = Yonhap News) Correspondent Kim Yeon-sook = Senior U.S. Federal Reserve officials [discussed] price stability and the financial system following the Fed's benchmark interest rate hike last week ...
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