Fed's Collins Describes Latest US Inflation Data as 'Mixed'
Boston Federal Reserve President Susan Collins described the latest U.S. inflation data as mixed, noting that while headline figures were higher than expected, they were driven by a variety of factors not necessarily signaling further rate hikes. She highlighted portfolio management fees and stock valuations rather than supply-demand imbalances as contributors to elevated readings. Collins expressed confidence in her outlook for gradual disinflation under the current slightly restrictive interest rates, citing research pointing toward easing price pressures from improved productivity and waning effects of Trump-era tariffs. However, she left open the possibility of raising rates if inflation does not subside on its own. The Personal Consumption Expenditures Price Index rose at a 3.7% annual rate in July—above the Fed's target—which has prompted some officials to consider further tightening.
