Boston Fed President Collins: Policy Well Positioned After Higher-Than-Expected PPI Data

Boston Fed President Susan M. S. producer prices rising far faster than expected. Collins delivered her remarks and participated in a fireside chat at an event hosted by the Boston Economic Club on May 13, 2026 in Boston, Massachusetts.

Collins, who is President and Chief Executive Officer of the Federal Reserve Bank of Boston, told the audience that inflation remains the Fed’s top concern. She added that rates may need to stay restrictive for an extended period and could even rise if inflation persists. "Inflation risks keep policy restrictive," Collins stated, according to a summary of her comments.

She warned that expectations could be harder to anchor due to energy shocks linked to Middle East tensions. Prolonged conflict increases both inflation and growth risks, Collins said, making policy decisions more difficult.

U.S. Is better insulated from energy shocks than in the past. Collins said she still sees room for cuts later but stressed that inflation is unlikely to ease this year and may only cool meaningfully in 2027. She repeated that Fed policy is well positioned to deal with risks and that the Fed will need to keep policy restrictive for some time.

In a separate statement, Collins said interest rates should remain on hold for some time, arguing she is particularly concerned about elevated inflation. Her outlook came on the same day that government data showed producer prices climbing at a pace well above forecasts. S.

9%. S. 3%. S. 5%. S. 3%.

The hotter-than-expected inflation readings underscored the challenges Collins outlined in her speech. She had emphasized that monetary policy is well positioned to respond to economic developments amid ongoing risks, uncertainty and supply-side shocks. Collins shared her economic outlook at the Boston Economic Club event, focusing on the challenges for price stability.

She affirmed that the central bank’s current stance leaves it prepared for different paths ahead.