(Corrects day of week in last paragraph)
By Howard Schneider
WASHINGTON, Aug 25 (Reuters) - The U.S. Federal Reserve will need to raise interest rates soon unless coming data show a continued decline in inflation that remains too high and which has become a "pervasive" concern for businesses and households, Boston Fed President Susan Collins said on Tuesday.
Collins said in comments posted to the Boston Fed website that the current Fed policy rate, under her base case outlook, will continue to push down prices and help with a "gradual disinflation" aided also by the recent rise in longer-term bond yields and other factors.
But "should evidence of sustained inflation progress not materialize, I believe it will be appropriate to tighten policy soon to ensure we deliver price stability in a reasonable time frame. ... Concerns about high prices are pervasive in my conversations with stakeholders across New England," Collins wrote.
#high #pervasive
By Howard Schneider
WASHINGTON, Aug 25 (Reuters) - The U.S. Federal Reserve will need to raise interest rates soon unless coming data show a continued decline in inflation that remains too high and which has become a "pervasive" concern for businesses and households, Boston Fed President Susan Collins said on Tuesday.
Collins said in comments posted to the Boston Fed website that the current Fed policy rate, under her base case outlook, will continue to push down prices and help with a "gradual disinflation" aided also by the recent rise in longer-term bond yields and other factors.
But "should evidence of sustained inflation progress not materialize, I believe it will be appropriate to tighten policy soon to ensure we deliver price stability in a reasonable time frame. ... Concerns about high prices are pervasive in my conversations with stakeholders across New England," Collins wrote.
#high #pervasive
4 hours ago
