Arabic version: كولينز تؤيد رفع الفائدة من الاحتياطي الفيدرالي مع تصاعد مخاطر التضخم

According to Cnbc, Boston Federal Reserve President Susan Collins supported last week’s quarter-point interest rate hike, saying she sees an increased likelihood that inflation will remain notably above the Fed’s 2% target.

In a LinkedIn post explaining her decision, Collins said a “somewhat more restrictive federal funds rate will help ensure that inflation durably returns to target.” She said upside risks to inflation had increased while labor market conditions appeared “a bit stronger overall” and the unemployment rate remained low.

“With the labor market on a better footing, monetary policy can focus on a timely return to price stability, especially after five and a half years of too high inflation,” Collins wrote. She participates in Federal Open Market Committee meetings but is not currently a voting member.

Markets were broadly split over another Fed move at the October FOMC meeting. CME Group’s FedWatch tool showed 53.1% expecting a further 25-basis-point increase. Separately, European Central Bank executive board member Philip R. Lane said a “second wave of rising energy prices” was likely to keep inflation “higher for longer.”

Lane told Le Temps that the ECB was forecasting upward pressure on food, energy, including electricity, and goods more broadly. He said a larger and more persistent shock in autumn would hold back the eurozone economy, while noting uncertainty around the ECB’s baseline outlook.