Boston Federal Reserve President Susan Collins expressed support Friday for keeping interest rates elevated as the battle against too-high inflation continues. In remarks to a banking group in Maine, the central bank official said there’s still the possibility that the Fed will have to raise rates further if economic data doesn’t cooperate. “I expect rates may have to stay higher, and for longer, than previous projections had suggested, and further tightening is certainly not off the table,” Collins said in prepared remarks. “Policymakers will stay the course to achieve the Fed’s mandate.” The commentary comes two days after the rate-setting Federal Open Market Committee decided not to raise rates following its two-day meeting. Collins is an FOMC voting member this year. The federal funds rate is currently targeted in a range between 5.25%-5.5%.
Source: CNBC
