Fed's Collins Warns Rates Must Rise Soon if Core PCE Stays at 3.3%
Updated
Updated · Yahoo Finance · Aug 25
Fed's Collins Warns Rates Must Rise Soon if Core PCE Stays at 3.3%
3 articles · Updated · Yahoo Finance · Aug 25
Summary
Susan Collins said the Fed should tighten policy soon unless incoming data show sustained disinflation, arguing inflation has stayed too high for too long and price concerns are now pervasive.
A Reuters poll expects Wednesday's July core PCE reading to hold at 3.3%, unchanged from June and still well above the Fed's 2% target that policymakers have missed for more than five years.
Collins said the current 3.5%-3.75% policy rate and higher long-term Treasury yields should still help deliver gradual disinflation, but warned the Fed cannot wait indefinitely for clearer progress.
Her comments land ahead of Chair Kevin Warsh's Jackson Hole speech on Thursday, with officials divided over further hikes as tariffs, Iran-linked oil prices and AI investment keep inflation pressure elevated.