Fed's Collins says gradual rate hikes best to manage economic risks

Federal Reserve Bank of Boston President Susan Collins said on Saturday that she favours gradual, modest increases in interest rates as a way to navigate economic uncertainty. Business Recorder reported her remarks at a conference hosted by the Boston Fed, where she told reporters that a measured course was appropriate.

Collins described risks to the real economy as running in both directions, with consequences for the Fed’s economic and inflation responsibilities. She said those conditions argue against forceful moves aimed at bringing high inflation down, while her current position still supports a steady pace of rate increases.