Fed’s Collins backs one more rate hike and sees no cuts this year
While the stress in the banking sector made it hard to know what was the appropriate interest-rate policy, another one-quarter-percent rate hike seemed reasonable, Boston Fed President Susan Collins said Thursday.
Collins’... While the stress in the banking sector made it hard to know what was the appropriate interest-rate policy, another one-quarter-percent rate hike seemed reasonable, Boston Fed President Susan Collins said Thursday. Collins’ position matches the median forecast of Fed officials in their latest economic projections released last week.
Collins called herself “a realistic optimist” saying that she still thinks there is a path to bring inflation down without a significant recession.Recent data show signs of more strength in the economy than many anticipated. This strength might reflect the fact that interest-rate policy did not enter “fully restrictive territory” until the second half of last year and it maybe too soon to see its full effects on activity, she said.
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