Boston Federal Reserve President Susan Collins said Friday that the softer consumer price inflation data released this week was promising news but that she didn’t want to overreact to the numbers and draw the conclusion that the central bank was done raising interest rates.
“I wouldn’t take additional firming off the table,” Collin said, in an interview on CNBC.
Just like it was important not to overreact to a bad inflation print, Collins said she didn’t want to overreact to promising news.
Excluding volatile food and energy prices, consumer inflation is still running at a 3.4% annual rate over the past three months, she said, “That’s higher than we want” and the Fed needed to be “patient and resolute.”
In addition, Collins said the monthly and weekly economic data was “so noisy right now.”
Rent inflation has been very uneven she noted. There is also “more to do” on non-shelter service inflation, she added.
Stocks
DJIA
SPX
were lower in volatile morning trade on Friday while the 10-year Treasury yield
BX:TMUBMUSD10Y
rose to 4.45%.
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