Boston Fed President Susan Collins “restoring price stability remains the current imperative and it is clear that there is more work to do.”
“I expect this will require additional increases in the federal funds rate, followed by a period of holding rates at a sufficiently restrictive level for some time,” she said.
“The latest data have not reduced my sense of what sufficiently restrictive may mean, nor my resolve,” she added.
Nevertheless, “there is a pathway to reestablishing price stability with a labor market slowdown that entails only a modest rise in the unemployment rate.”
“At the Fed we are committed to returning inflation to the 2 percent target in a reasonable amount of time. Only when inflation is low and stable can the economy in general — and the labor market in particular — work well for all Americans,” Collins said.