Speaking at the conference organized by the Boston Fed, Collins said, “Now, interest rates are in the restrictive area and according to the current indicators, it may be close to the top. For this reason, I think it would be appropriate for the tightening to take place more slowly. More restrained regulation will also ease the effort with monetary policy risks.” made its assessment.
The Fed, which increased interest rates by 75 basis points in 4 meetings in a row, slowed the rate of increase last month and increased it by 50 basis points. Recent projections show that Fed officials expect the rate to rise to 5.1 percent this year and stay there until 2023.
Collins, who does not have the right to vote this year, shared the example view and said, “I expect more interest rate hikes. It will probably be a little over 5 percent and it will stay at this level for a while.” The Fed is expected to slow the rate of increase at the meeting on February 1 and continue on the road with 25 basis points.
In his speech, Collins added that he is optimistic that inflation will be lowered without causing great calm.
