Fed's Collins: More rate hikes may be needed

Boston Fed President Susan Collins said more rate hikes may be needed but that they are close to the peak rate hikes. Collins, who answered questions from Yahoo Finance in Jackson Hole, said that the U.S. Federal Reserve may need to raise interest rates further. Collins said, “Additional hikes may be needed. We are very close to the ultimate level where we will keep interest rates for a long time.” Stating that they will monitor the data before making any decisions, Collins said that time is needed to fully control inflation and reduce it to the 2% target. Collins does not have a vote on the FOMC, which determines the Fed’s monetary policy this year. The Fed raised the policy rate by 25 basis points to 5.25-5.5% at its July meeting, thus raising interest rates to a 22-year high.