Fed Officials Keep Focus on Inflation, Signal Possible Rate Hike
John Williams and Susan Collins see another increase as possible this year, while officials warn inflation has not yet eased.
Key takeaways
- Williams and Collins said another Fed rate increase may be appropriate this year.
- Collins expects fuel costs to keep inflation above target in coming months.
- Williams expects inflation to approach 2% through 2027 as tariff and energy effects fade.
Three Federal Reserve officials said the inflation fight is not over. New York Fed President John Williams and Boston Fed President Susan Collins said another rate increase may be appropriate this year.
Collins said high inflation risks remain the Fed’s main focus. She expects rising diesel, jet fuel and heating fuel prices to keep headline and core inflation above target in the coming months.
Williams expects inflation to fall to around 2% through 2027 as tariff effects ease and energy prices stop adding to inflation. He said the economy is not overheating. Richmond Fed President Tom Barkin called inflation persistent and said the effects of AI investment on inflation are visible.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
