Fed’s Collins Flags Tariffs’ Inflation Risk, Keeps Next Rate Call Open

Boston Federal Reserve President Susan M. Collins said she "does not rule out" tariffs exerting a larger and more persistent upward pressure on U.S. inflation than previously anticipated. The 145% levy on Chinese goods that took effect on April 9 could take longer to filter through to prices, she warned in remarks on 22 August. Collins added that policymakers have not settled on a course of action for the Federal Open Market Committee’s next meeting, underscoring that the decision "is not a done deal." Her comments suggest officials remain data-dependent as they weigh whether additional tightening is needed to keep inflation on the path toward the central bank’s 2% goal.