Boston Fed president says tariff-induced inflation ‘looks inevitable.’ She suspects the central bank will hold rates steady for longer

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• In her first public remarks since the central bank left interest rates unchanged, Boston Federal Reserve President Susan Collins said tariffs would fuel inflation, but it might not be felt for long. She echoed Chair Jerome Powell, who said tariff-induced inflation could be transitory, but she admitted there is a threat to that expectation. 

Before President Donald Trump’s election night victory, some economists warned the tariffs he promised on the campaign trail could be inflationary. Now a Federal Reserve president is in agreement.