A federal reserve official on Wednesday signaled that interest rates likely will need to be held at the two-decade high for longer than previously expected to reduce price pressures, Bloomberg reports.
Federal Reserve Bank of Boston President Susan Collins, noting the lack of progress made this year, says slower economic growth will be needed to make sure inflation can reach the Fed’s 2% goal.
“The recent upward surprises to activity and inflation suggest the likely need to keep policy at its current level until we have greater confidence that inflation is moving sustainably toward 2 percent,” Collins said Wednesday at the Massachusetts Institute of Technology. “The recent data lead me to believe this will take more time than previously thought.”
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