Boston Fed's Collins Says Policy Well Positioned After PPI Data Release

Boston Fed President Susan Collins said interest rates should remain on hold for some time. Collins delivered the remarks at an event hosted by the Boston Economic Club on May 13, 2026 in Boston, Massachusetts. The comments came on the same day that government data showed U.S. PPI rising 1.4% month-over-month against an expected 0.3%.

" She told the audience that the Fed will need to keep policy restrictive for some time and that Fed policy is "well positioned" to deal with risks. Collins added that she still sees room for cuts later but stressed that inflation is unlikely to ease this year and may only cool meaningfully in 2027.

Collins said she is particularly concerned about elevated inflation. 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. She noted that the U.S. is better insulated from energy shocks than in the past.

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