Collins said rising living costs, amplified by the Iran war, are squeezing US
low-income households and businesses and that energy costs in her region are
particularly burdensome. She noted inflation has been above the Fed's 2% target
for more than five years. A non-voting FOMC participant who backed holding rates
in July, Collins described the current policy as slightly restrictive and said she
expects inflation to decline gradually but would support hiking rates as early
as September if incoming data warrant tighter policy.
