Fed's Collins Sees Path to Curb Inflation Without Spiking Unemployment
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Boston Fed president Susan Collins remains optimistic that inflation can be reduced without causing a sharp rise in unemployment.
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Collins believes the Fed will need to maintain high interest rates for some time until there is clear evidence inflation is under control.
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Recent data showing slowing inflation in October is promising but more evidence is needed before changing policy.
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Collins cites the economy's resilience in 2021-2022 as a reason she believes unemployment can stay low during disinflation.
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There are risks and uncertainties ahead, but Collins sees evidence inflation is moderating while unemployment remains historically low.