🏦 Fed’s Collins says rates could go higher if inflation refuses to cool.

Fed President Susan Collins said inflation is still too high and that the Fed needs sustained evidence of disinflation before keeping the current policy rate in place.

The labor market remains consistent with maximum employment, while economic growth is running close to trend.

Over the coming months, Collins will be watching for signs that inflation can continue moving toward the Fed’s 2% target.

The risk isn't only inflation from demand.

She also highlighted potential upside risks from:

AI-related investment
Oil price movements
Supply shocks
Inflation expectations

Her message was pretty clear:

If there isn't convincing evidence that inflation is sustainably falling,
raising rates sooner rather than later could be appropriate.

Markets want rate cuts.
The Fed wants proof first.
“Show me the inflation data.” 💀📊

Theo bạn, Fed sẽ cut rates trước khi inflation về 2%, hay Collins đang báo hiệu higher-for-longer? 👀

#Fed #FederalReserve #Inflation #interestrates #Macro