Fed’s Collins: Tight monetary policy is key to lowering inflation
Federal Reserve Bank of Boston President Susan Collins reached the headlines again on Friday, this time in an interview with Reuters. She said that surprises makes it hard to predict what will happen at the next FOMC meeting in May.
The banking system is in “good shape” despite some “pockets” of trouble said Collins. According to her, actions have restored confidence in the sector. She thanked that the stigma tied to drawing on lending facilities have eased.
Regarding inflation, Collins welcomed the latest Core PCE report but warned that not enough progress has been made. Maintaining tight monetary policy is the key to lowering inflation, explained the Boston Fed President.
Fed's Collins: Need to balance risk that we don't do enough on inflation vs doing too much