Fed’s Schmid: Rising long-term rates are starting to strain housing and commercial lending
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Collins discussed rising borrowing costs at a Richmond Fed conference in Asheville, N.C., on Thursday, according to Axios. Jeff Schmid, Kansas City Fed president: Likened the challenge of separating strong demand from supply-driven inflation to a seven-layer dip: With AI and data
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ICYMI - Boston Fed's Collins raises prospect of rate hikes if inflation broadens
The desk interprets Boston Fed President Susan Collins' recent comments as a significant signal that the Federal Reserve may need to consider rate hikes if inflationary pressures broaden. Per the full note [source], Collins highlighted rising inflation expectations and the impact of tariff pass-through as critical factors that could necessitate a shift in monetary policy. This perspective aligns with the growing concern that inflation could persist longer than initially anticipated, particularly as household and business inflation expectations have reached the upper end of their historical ranges. The desk notes that Collins' call for a more neutral stance in Fed communications could lead to a reassessment of rate-cut timelines currently priced into the market, which could have broader implications for risk assets and the dollar.
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