Fed's Collins says it is clear tariffs will drive inflation up near term

Federal Reserve Bank of Boston President Susan Collins said on Thursday that Trump administration tariffs will drive up inflation in the U.S. but it is unclear how persistent that upward pressure will be.

"It looks inevitable that tariffs are going to increase inflation in the near term" and it seems more likely than not the jump will be short lived, she said in an appearance in Boston.

But she added "there are risks" the higher price pressures could prove more enduring. Collins also said she now expects the Fed to hold rates steadier for longer given upside risks to inflation.