Federal Reserve Bank of Boston President Susan Collins:
- Rate policy well positioned, holding steady for now seems best
- Tariffs will drive up inflation, slow growth levels
- Tariffs could push core inflation ‘well above’ 3% this year
- Renewed price pressures could delay rate cuts
- Fed may yet find space to lower rates this year
- Fed policy choices difficult, beset by trade offs
- Monetary policy needs to be nimble in uncertain environment
- Must keep inflation expectations stable
- Sees upside inflation risks, downside growth risk
- Fed policy still positioned to lower inflation pressures
- Tighter financial conditions may restrain activity
- High uncertainty clouding economic outlook
- Expects inflation pressures to wane over longer run
Collins comments come from the text of a speech prepared for delivery
before an event at Georgetown University in Washington
This article was written by Eamonn Sheridan at www.forexlive.com.