Fed’s Collins suggests US central bank can hold steady

Susan Collins of the Fed indicated on Thursday that the US central bank may be in a position where it doesn’t need to hike rates once more, while she left the door open for further action. These remarks had no immediate response from the US Dollar Index, which was last observed increasing 0.45% daily at 103.82.

Collins stated in an appearance on Yahoo Finance’s video channel that “we may be near, we could even be at a place where we would hold” and not raise rates any further. However, she added, “further increments are definitely feasible. At this point, we need to look holistically, exercise extreme patience, and avoid attempting to predict what the data will reveal as it develops.

Collins spoke outside the annual research conference of the Kansas City Fed in Jackson Hole, Wyoming. She is a voting member of the Federal Open Market Committee, which sets interest rates. The committee meets again next month, although it’s unclear what decisions will be made on the target interest rate.

Key takeaways
“More Fed rate hikes are possible.”

“Rise in long term yields are helpful to Fed objectives.”

“Hopeful Fed can bring inflation back to 2% in reasonable amount of time.”

“Premature to send clear signal about timing of rate cuts.”

“Haven’t really seen notable slowdown in growth.”

“Mindful about how an easing in inflation would affect policy stance.”

“Housing is a big challenge for the economy.”