A Federal Reserve policymaker signals readiness to support a rate increase next month if economic data warrants tighter policy.
Federal Reserve Bank of Boston President Susan Collins indicated she would back a September interest rate hike if upcoming data supports further tightening. While she supported keeping rates unchanged in July, Collins emphasized inflation remains too high and risks persist despite mixed labor market signals.
Collins noted private-sector hiring remains positive and unemployment stable, though she cautioned against overreacting to recent jobs data. Markets currently view a September rate move as uncertain, with traders assigning roughly even odds to a hike. Her remarks precede today’s critical July CPI report, which could sway expectations.
The timing of Collins’ comments adds scrutiny to the inflation data, with potential upside or downside surprises carrying greater weight. As a non-voting FOMC member this year, her stance reflects broader Fed sentiment rather than direct policy influence.