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Federal Reserve Bank of Boston President Susan Collins said it looks “inevitable” that tariffs will boost inflation, at least in the near term, adding it’s likely appropriate to keep interest rates steady for longer.While tariff-driven inflation could prove short-lived, Collins said it’s possible price pressures could prove more persistent.“It looks inevitable that tariffs are going to increase inflation in the near term,” Collins said Thursday during a fireside conversation in Boston. “My kind of modal outlook would be that that could be short-lived with a continuation of some disinflation, but further in the future than I might have expected before.”“But there are risks around that, and depending on how things unfold, it may be more persistent and a larger increase,” she said.Fed officials left interest rates unchanged last week for a second straight meeting. Policymakers have said borrowing costs are well positioned to wait for greater clarity on the economic impact of President Trump’s policy changes, including trade and immigration.Get Starting PointA guide through the most important stories of …
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