Fed's Collins: Tariffs could push core inflation well above 3% this year

Federal Reserve (Fed) Bank of Boston President Susan Collins joined the ever-growing stream of Fed policymakers standing up and flashing loud warning signs that ongoing uncertainty at the hand of the Trump administration's constantly waffling tariff policy stance will continue to weigh on the Fed's ability to adjust policy rates.

Key highlights

Renewed price pressures could delay rate cuts.

The Fed may yet find space to lower rates this year.

Tariffs could push core inflation well above 3% this year.

Tariffs will drive up inflation, and slow growth levels.

Fed policy choices difficult, beset by trade-offs.

We must keep inflation expectations stable.

Monetary policy needs to be nimble in an uncertain environment.

I expect inflation pressures to wane over the longer run.

High uncertainty is clouding the economic outlook.

Rate policy well positioned, holding steady for now seems best.

Tighter financial conditions may restrain activity.

Fed policy is still positioned to lower inflation pressures.

I see upside inflation risks, and downside growth risks.

Financial markets performing well, continue to be liquid.