Boston Fed President: Current Interest Rates are Mildly Tightening

Susan Collins, President of the Boston Federal Reserve Bank, assessed that current interest rates in the United States are acting to restrain economic activity and lower inflation. She characterized the rates as being at a 'mildly tightening level' and explained that the effects of interest rate constraints are evident in the small business and housing markets. President Collins stated at the economic symposium held in Jackson Hole, Wyoming, on the 27th that interest rates remain mildly tightening. Given that the inflation indicators for July were higher than expected, she added that the continuation of the rate freeze will depend on additional inflation indicators. According to data from the U.S. Bureau of Economic Analysis, the Fed's preferred inflation measure rose by 3.7% over the year up to July, while the core inflation measure increased by 3.3%. President Collins positively evaluated the upcoming changes to the BEA's price measurement methods next month, stating that these changes are valuable. The Fed froze the benchmark interest rate in July, and the next monetary policy meeting will be held on September 15-16. She indicated that they will closely assess the potential for additional supply shocks and the persistence of price pressures. Additionally, she emphasized that the Fed's credibility remains strong.