Federal Reserve Collins: If inflation doesn't cool as much as expected, it might support the increase

On 28 August, Federal Reserve Chairman Collins indicated that she might support the Fed ' s interest rate hike at its next meeting if future data showed that inflation was falling short of expectations. As she pointed out this week, if there is no clear evidence of continued improvement in inflation, it might be appropriate to further tighten policies “promptly”. When asked whether “promptly” meant the next one or two meetings, he said, “Possible, yes”. Collins argued that the July inflation report as a whole was in line with her judgment. Although core inflation was slightly higher than expected, data performance was “more encouraging” after the elimination of some projects where prices were difficult to observe directly. She still expected that inflation would gradually cool down, even if it did not. She also revealed that her latest forecast submitted in June was that interest rates would remain constant until the end of the year and that the current level of interest rates was considered “lightly restrictive” for the economy。