Fed's Collins: Open to pause on rate hikes

Boston Fed President Susan Collins said the Fed is open to holding off on raising interest rates at its June meeting to see the impact of the tightening it has done so far. In a speech to Rhode Island Community College graduates on Thursday, Collins said she sees “signs of moderation” in inflation that could obviate the need for future increases. “I believe we may be at or near the point where monetary policy can pause interest rates,” Collins said. “This will provide an opportunity to better assess the impact on economic activity of the actions taken to date and the overall tightening of credit conditions.” But market prices have shifted on expectations that the Fed will raise interest rates by a quarter point by its July meeting.