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 restoring price stability in a timely 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 ab

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 restoring price stability in a timely 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% has risen.