Fed's Collins Hints at Need for Continued Policy Tightening, Says Inflation Fight Takes Priority Over Housing Concerns
TechFlow reports that on November 13, Boston Fed President Collins hinted on Friday that tighter monetary policy may be needed to cool down prices. In a speech centered on the housing market, Collins noted that higher interest rates could limit housing affordability. She also added that, in the long run, ensuring price stability will benefit both the housing market and the broader economy."In the short term, the higher interest rates sometimes needed to cool the economy and control inflation may increase the cost of buying and building homes," Collins said in her remarks, "but in the long run, stable prices can create a predictable economic environment, which is beneficial for the housing market." (Jinshi)
TechFlow reports that on November 13, Boston Fed President Collins hinted on Friday that tighter monetary policy may be needed to cool down prices. In a speech centered on the housing market, Collins noted that higher interest rates could limit housing affordability. She also added that, in the long run, ensuring price stability will benefit both the housing market and the broader economy.
"In the short term, the higher interest rates sometimes needed to cool the economy and control inflation may increase the cost of buying and building homes," Collins said in her remarks, "but in the long run, stable prices can create a predictable economic environment, which is beneficial for the housing market." (Jinshi)
