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Boston Fed President warns of persistent inflation
Boston Federal Reserve Chair Susan Collins warned that inflation remains significantly above the target rate of 2%, supporting a quarter-point interest rate increase to ensure a permanent curb on inflationary pressures. She emphasized that the labor market remains strong with a declining unemployment rate, providing monetary policy with room to focus on price stability—especially after more than five years of high inflation. Data shows a divided market opinion regarding the Fed's next move, with over 53% expecting a 25 basis point rate hike, while ongoing pressures from rising energy and commodity prices continue to hinder economic recovery.
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