Susan M. Collins

This is a bit of a pushback from the doves. The battle lines are clear now though with either one more hike in June/July or none.

Key excerpt:

While inflation is still too high, there are some promising signs of moderation. I believe we may be at, or near, the point where monetary policy can pause raising interest rates. This will provide an opportunity to more fully assess the impact of the actions taken to date and the general tightening of credit conditions on economic activity. However, I also believe it is important to make each policy decision based on a wholistic assessment of information available at the time – and the next policy meeting will be in mid-June. In the meantime, we continue to monitor a wide range of data – about price developments, labor markets, financial conditions and more – to evaluate how the economy is doing.

Later in the Q&A:
  • Baseline outlook does not see a significant economic downturn
  • Would not be surprised by a modest increase in unemployment
  • Inflation decline has been slower than expected