Boston Fed President Collins comments on interest rates

Boston Fed President Susan Collins said more rate hikes were still possible. Collins added that the full impact of the hikes had yet to be seen. Boston Fed President Susan Collins said officials were taking a more patient approach to monetary policy because interest rates were at or near their peaks, but that further rate hikes were still possible. Collins said in a speech at Wellesley College in Massachusetts on Wednesday that U.S. central bankers could take more time to assess incoming economic data because “we are probably near the peak of this tightening cycle and probably at the peak.” But the Boston Fed chief said “further tightening may be warranted depending on the information that comes in.” Collins, who does not vote on interest rate decisions this year, said policymakers should keep interest rates at restrictive levels for a while longer and that officials are waiting until they see evidence that inflation is moving toward 2% in a sustainable way. Collins also said the full impact of the Fed’s rate hike cycle has yet to be felt on the economy. “I don’t think we’ve seen the full impact of the rate hikes to date,” she added.