Susan Collins, the head of the Federal Reserve Bank of Boston, said she would support an interest rate increase in September if inflation remains high, according to her remarks.
Collins stated she is ready to move toward a tighter monetary policy if economic data requires it. She noted that poorer Americans are struggling to make ends meet.
Poorer Americans are struggling to make ends meet.
During the July meeting, the Federal Reserve kept the policy interest rate in the 3.50%-3.75% range, while three members voted for a 25 basis point increase. Susan Collins does not vote on interest rate decisions this year, but she attends the Federal Open Market Committee meetings and expresses her views in monetary policy discussions.
Rising energy prices following the war in Iran are increasing the pressure on the budgets of low-income households, according to Collins.
The US economy reported a loss of 23,000 jobs in July, according to preliminary data — a claim not yet verified.
Economists expect US consumer prices to increase by 0.1% monthly and annual inflation to fall from 3.5% to 3.4%. Core inflation, excluding food and energy, is expected to increase by 0.2% monthly, with the annual core inflation forecast at 2.5%.
