Back

Federal Reserve official Susan Collins says restrictive policy may need to last longer

Collins said interest rates may need to remain tight to bring inflation back to the U.S. central bank’s 2% target, while leaving open both further tightening and possible cuts later this year.

Fact Check
The claim is strongly supported by multiple independent, high-authority sources all dated May 13, 2026. The Reuters Japan article provides the most detailed account of Collins' remarks, confirming she said a mildly restrictive policy stance is likely to be maintained for some time, that rate hikes could be needed if inflation persists, and that she does not expect inflation to slow in 2026. The Morningstar/Dow Jones and WSJ articles corroborate that she left open both further tightening and possible cuts later. The Boston Fed's own In the News page references the same statements. The claim accurately characterizes Collins' position: restrictive policy may need to last longer, with both tightening and cuts remaining on the table.
Summary

Federal Reserve official Susan Collins said monetary policy may need to stay restrictive for longer to return inflation to the central bank’s 2% target. She added that additional tightening remains possible if conflict-driven price pressures worsen. At the same time, Collins said rate cuts could still come later this year if inflation eases. The remarks underscore that the Federal Reserve is keeping a data-dependent stance, balancing persistent inflation risks against the possibility of future policy easing.

Terms & Concepts
  • Restrictive monetary policy: A policy stance that keeps interest rates high enough to slow demand and reduce inflationary pressure.
  • Inflation target: The level of price growth a central bank aims to achieve over time; here, the Federal Reserve’s target is 2%.
  • Rate cuts: Reductions in benchmark interest rates, typically used to ease financial conditions and support economic activity.