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Susan Collins, president of the Federal Reserve Bank of Boston, stated that the recent decision to raise interest rates will assist in returning inflation to the central bank's 2% target.
In a LinkedIn post published on Tuesday, Collins supported last week's move, arguing that a "somewhat more restrictive federal funds rate" is necessary to ensure inflation durably returns to its goal.
Collins noted that the labor market is now on a "better footing," which allows monetary policy to focus on a timely return to price stability.
She highlighted that this shift comes after five and a half years of inflation that she described as too high.
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