HomeFinancial MarketsBoston Fed President Warns That Further Rates Hikes Possible

Boston Fed President Warns That Further Rates Hikes Possible

Federal Reserve Bank of Boston President Susan Collins has warned that policymakers may still consider further rate hikes as inflation continues to cool. “In order to get back down to 2% in a reasonable amount of time we need to be patient and resolute, and I wouldn’t take additional firming off the table,” Collins explained, adding that the central bank’s battle against inflation is not over.

Collins told reporters that although inflation data is showing a positive outlook, however, the Fed remains bearish due to the knowledge that this outlook can turn. Earlier this month, the Fed decided to leave interest rates within the 5.25% to 5.5% range; a 22-year high.

On Tuesday, the latest Consumer Price Index (CPI) data showed that US inflation broadly slowed in October, which increased investors’ bets that the Fed is done with its rate-hiking agenda. While Collins acknowledges that goods prices have lowered significantly, she revealed that price slowdowns for some core services including housing have not been as extensive as she has hoped.

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