BOSTON: Federal Reserve Bank of Boston President Susan Collins said on Saturday she supported a steady pace of modest interest rate increases because that path of action better managed economic uncertainties.
When it comes to moving monetary policy to a tighter footing, "a steady, gradual path seems appropriate to me at the moment. But I'm open-minded," Collins told reporters at a conference held by her bank on housing issues in Boston.
"I do see the risks as two-sided on the real side of the economy," Collins said, with inflation high and its gains broadening throughout the economy, while the job market was stable with the potential to accelerate.
At the same time, there are the ongoing risks of more shocks hitting the economy, Collins said. Furthermore, "it's possible that the rise in medium to longer term rates that we've seen since the beginning of the year may actually weigh on demand more than I'm thinking," and serve as another source of restraint on economic activity, she said.
