Boston Fed President Collins said on Wednesday that while the progress in inflation is welcome, policymakers should not rule out further monetary tightening.
“We need to be patient and resolute in order to bring inflation down to 2% within a reasonable period of time, and we need to be patient and resolute and not push for further tightening,” he said in an interview with CNBC. It should not be excluded.” “The important thing is that we need to see it through to the end,” he said.
The Federal Open Market Committee (FOMC) is trying to determine whether further interest rate hikes are needed to ensure inflation falls to 2%, or whether previous policy and recent increases in long-term bond yields are sufficient. . On the 1st, the FOMC kept the policy interest rate unchanged at 5.25-5.5%, the highest level in 22 years.
Inflation slowed across a wide range of indicators in October, according to the Consumer Price Index (CPI) released on the 14th.
US CPI slows in both core and aggregate in October – expectations for further interest rate hike recede
Collins said there is some evidence that restrictive policy rates are helping to balance supply and demand in the economy. However, he also noted that long-term Treasury yields have fallen slightly since the FOMC’s last meeting.
He said there was “good news” in the latest inflation numbers, but added that core inflation is still higher than the Fed would like and the agency still has work to do. The next FOMC meeting will be held on December 12-13.
“The data is very noisy right now and progress so far has been very uneven, so I think we should be patient,” Collins said.
Original title: Fed’s Collins Says Further Tightening Not Off the Table (excerpt)