Boston Fed's Collins Reiterates Support for Tightening, Signals Potential Further Rate Hike This Year

English summary

Boston Fed President Susan Collins reiterated her support for the Federal Reserve's tightening policy on Tuesday, stating that a higher interest rate path is needed to guide inflation back to the 2% target. She emphasized that insufficiently restrictive policy could solidify price pressures and noted that a resilient labor market provides space to focus on fighting inflation. Her comments align with last week's FOMC 25-basis-point hike and dot plot projections, reinforcing expectations of at least one more rate hike this year and pushing the US Dollar Index slightly higher to around 100.55.