Fed's Collins: Appropriate to Tighten Policy Soon If Inflation Progress Does Not Materialize

By Jessica Coacci

Boston Federal Reserve President Susan Collins said Tuesday it would be appropriate to tighten policy soon if evidence of sustained inflation progress does not materialize.

In a piece published by The Boston Fed ahead of the Fed's annual gathering at Jackson Hole, Wyo., Collins said she was comfortable with Fed's July decision to maintain interest rates at their current target range, but leaving them there will require continued evidence that inflation is cooling.

"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," Collins said.

For now, Collins said the current mildly restrictive policy stance should leave the committee well positioned to address evolving economic conditions and return inflation to target in a reasonable amount of time.

"Given the many possible scenarios, policy will need to be nimble," Collins said.

Policy makers will get a read this week on the Fed's preferred inflation reading, Personal Consumption Expenditures. Economists polled by The Wall Street Journal are expecting July's PCE to rise 3.6% year-over-year.

Collins is not a voting member of the FOMC this year.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

August 25, 2026 11:08 ET (15:08 GMT)