Boston Fed President Collins said she supports last week’s Fed rate increase and
that a moderate rise in the federal funds rate will help ensure inflation
durably returns to the central bank’s 2% target. With labor-market conditions
improving, monetary policy can shift to restore price stability in a timely manner
manner after five-and-a-half years of elevated inflation, she said. Collins, who
does not have a Fed policy vote this year, added that the probability inflation
will remain significantly above 2% and has risen.
