Fed’s Collins Says Tariff Price Boost Could Delay Rate Cuts (1)

Federal Reserve Bank of Boston President Susan Collins said the central bank may yet lower interest rates later this year, but tariff-driven inflation could delay further cuts.

“Renewed price pressures could delay further policy normalization, as confidence is needed that the tariffs are not destabilizing inflation expectations,” Collins said in remarks prepared for an event Thursday at Georgetown University in Washington.

Boston Fed President Susan Collins.

Photographer: Victor J. Blue/Bloomberg

As policymakers wait for a clearer picture on how tariffs will hit the economy, Collins said keeping rates steady is the best approach “for the time being.”

“I see monetary policy as well positioned to address a wide ...