Susan M. Collins, Interview: Greater Boston Chamber of Commerce

From Speech

“To address this situation, the Fed is raising interest rates, which slows the interest-sensitive components of demand. Returning the markets for goods, services and labor to a more stable balance is how monetary policy lowers inflation back to the 2% target. I do anticipate that accomplishing price stability will require slower employment growth and a somewhat higher unemployment rate.”

“Hence it is no surprise that, as monetary policy moves to a restrictive stance to transition the economy to more sustainable labor market conditions, there is apprehension about the possibility of a significant downturn. I do believe the goal of a more modest slowdown, while challenging, is achievable.”

From Q&A

“The balance sheet. For example… That’s a tool that really works in compliment with interest rates. Sales of assets can help to increase longer term interest rates. I would say that the runoff to those assets at the moment is I would think of as a passive tool related to the more active interest rate management that happens at the FOMC meetings. Those really work hand in hand together.”

“I think that it’s quite likely that inflation is near peaking and perhaps may have peaked already. I mentioned that some of those supply bottleneck challenges we’ve seen abating. I’ve also said that I hope that continues. Of course, there’s uncertainties there. My outlook is for a much slower growth in 2022. The indicators are that there’s modest growth at the moment.”