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

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.

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