Fed's Collins says 'likely appropriate' to keep policy rate on hold

By Ann Saphir

(Reuters) -Boston Federal Reserve President Susan Collins, who voted for the Fed’s policy-rate reduction last month, said on Wednesday she sees a “relatively high bar” for additional easing in the near term, citing worries about elevated inflation.

“Absent evidence of a notable labor market deterioration, I would be hesitant to ease policy further, especially given the limited information on inflation due to the government shutdown,” Collins said in remarks prepared for delivery to a bankers conference in Boston.

“It will likely be appropriate to keep policy rates at the current level for some time to balance the inflation and employment risks in this highly uncertain environment.”

The remarks underscore the deep divisions at the Fed that prompted Fed Chair Jerome Powell