Fed Collins: If inflation remains high, it will support the September hike

ON 12 AUGUST, ACCORDING TO THE BRITISH FINANCIAL TIMES, THE FED COLLINS STATED THAT THE POOR PEOPLE IN THE UNITED STATES WERE STRUGGLING TO SUSTAIN THEIR LIVELIHOODS AS THE WAR IN IRAN INCREASED THE COST OF LIVING. SHE WARNED THAT THE FED MIGHT NEED TO RAISE INTEREST RATES TO CONTAIN INFLATION. COLLINS SAYS THAT BUSINESSES AND HOUSEHOLDS IN THE NORTHEAST OF THE UNITED STATES ARE BEING SQUEEZED BY INFLATION, WHICH HAS EXCEEDED THE CENTRAL BANK'S 2 PER CENT TARGET FOR MORE THAN FIVE YEARS. SHE POINTED OUT THAT I HEARD (PRICE) PROBLEMS ALMOST EVERY TIME I SPOKE. SHE ADDED THAT, AMONG LOW- AND MIDDLE-INCOME FAMILIES, I WAS HEARING MORE AND MORE ABOUT THE CHALLENGES THEY FACED SUCH AS THE DIFFICULTY OF SUSTAINING THEIR LIVELIHOODS. ENERGY PRICES ARE INDEED UNBEARABLE, ESPECIALLY IN OUR REGION. COLLINS, WHO WAS CURRENTLY NOT VOTING IN FOMC, SUPPORTED THE MAINTENANCE OF INTEREST RATES IN JULY AND CONSIDERED THAT THE CURRENT LEVEL OF INTEREST RATES WAS “SLIGHTLY RESTRICTIVE” AND THAT “THIS WOULD ALLOW ITS EXPECTED INFLATION RATE TO GRADUALLY AND CONTINUOUSLY DECLINE”. SHE INDICATED, HOWEVER, THAT SHE WOULD BE WILLING TO SUPPORT THE INCREASE AS EARLY AS SEPTEMBER IF ECONOMIC DATA INDICATED THAT THERE WAS A NEED FOR INTEREST RATES. SHE SAID: I DO BELIEVE THAT THE ECONOMIC SITUATION IN THE COMING MONTHS MAY REQUIRE MORE STRINGENT POLICIES, AND IN THIS CASE I INTEND TO RAISE INTEREST RATES。