Boston Federal Reserve President Susan Collins said Friday that additional increases in interest rates could be necessary to bring down inflation. Despite this week's data pointing to a decrease in both consumer and producer prices, Collins noted that the new information is erratic.Boston Federal Reserve President Susan Collins said Friday that even with recent encouraging signs of inflation, more rate hikes may still be needed. Collins told CNBC's Steve Liesman, "I understand the tendency to really enjoy good news, and there was some good news in some of the numbers — and I think that we need to appreciate that. But I don't see additional firming off the table. I think the key point is we need to really stay the course."Other Fed officials have echoed these sentiments, saying inflation is pursuing the Fed's 12-month target of 2%, but it still has a way to go. They are wary of repeating past mistakes where the Fed stopped too soon and ended up having to pay for it.Recent data has revealed that consumer and producer prices have slowed down; however, Collins noted it is "noisy" and all data should be considered holistically. She also mentioned the progress made in stabilizing the labor market and tightening financial conditions, but added that the Fed must be patient and not declare victory.Collins will not be a voting member of the FOMC until 2025. Markets expect there to be no more rate hikes during this cycle. The Fed's benchmark borrowing rate is targeted in a range between 5.25%-5.5%, the highest rate in 22 years. The CME Group's FedWatch gauge projects that the Fed will start cutting rates in May and reduce the fed funds rate by a full percentage by the end of 2024.
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