Fed Officials Signal Rate Hikes May Continue But Remain Data-Dependent

Fed President Susan Collins said policymakers can "proceed cautiously" on future rate hikes as more evidence is needed to confirm inflation is tamed.
Collins acknowledged some positive news on inflation but emphasized the difficulty in interpreting the data and suggested further tightening may be warranted if improvements aren't sustained.
Collins aligned with Fed Chair Powell and Governor Waller in supporting a patient approach while remaining cautious about recent inflation developments.
Collins noted policy rates may be at or near their peak but didn't rule out further increases depending on incoming data.
As of Wednesday, traders see a 93% chance the Fed will pause rate hikes at its September meeting.