Fed policymaker Collins says would back September rate hike if data points to that direction
From the original
Supported keeping interest rates unchanged in July, Fed position remains "mildly restrictive" Sees the possibility that economic conditions in the coming months will require tighter policy Would be prepared to raise interest rates in such a context Warns against jumping to conclu
Related speeches
4 itemsFed's Collins: I still expect interest-rate cuts down the road
The desk interprets Fed Governor Collins' recent comments as indicative of a potential shift towards interest rate cuts, albeit with caution due to rising inflation risks. Per the full note [source], Collins emphasized a cutting bias while acknowledging that rates may remain on hold longer than previously expected. This nuanced stance suggests a growing divergence among Fed officials, especially with non-voting members like Collins expressing a more neutral outlook. The desk sees this as a precursor to a broader pivot in monetary policy, contingent on geopolitical developments and economic data.
Feds Collins:It’s possible the Fed will need to hike rates to cool inflation pressures
The desk interprets recent comments from Fed Governor Susan Collins as indicative of a more hawkish stance regarding interest rates, emphasizing the need for sustained restrictive policy to combat persistent inflation pressures. Per the full note [source], Collins highlighted that the Fed may need to hike rates further to achieve its 2% inflation target, particularly in light of ongoing geopolitical tensions that could exacerbate inflation. This aligns with our view that the Fed is unlikely to pivot towards rate cuts in the near term, despite hopes for easing later this year. The broader market consensus appears to be split, with some firms anticipating a more dovish approach as inflationary pressures potentially cool in the coming months.