"Creating a Vibrant, Inclusive Economy: Remarks at the Community College of Rhode Island"
May 25, 2023
Community College of Rhode Island
Takeaways from Boston Fed President Susan M. Collins’ May 25, 2023 Remarks
- Collins wanted her first visit to an educational institution as Boston Fed president to be at a community college – because they provide affordable, accessible higher education to learners from all backgrounds. Community colleges play a crucial role in helping students develop the necessary skills to contribute in the economy of today and of the future. It is essential that our economy has opportunities for everyone to thrive, and that makes community colleges particularly important.
- High inflation impacts everyone – and we need to make sure it does not become entrenched. An inflation rate that is low and predictable is needed for fostering conditions that promote a vibrant, resilient, and inclusive economy – and for maximum employment that is sustainable over time. This is why it is so important to remain resolute in bringing inflation back down to the Fed's 2 percent target in a reasonable amount of time.
- While inflation is still too high, there are some promising signs of moderation. Collins believes 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, it is important to make each policy decision based on a wholistic assessment of information available at the time.
- Collins noted the breadth of ways the Fed advances its mission – e.g., providing back-end infrastructure that underpins the financial system that people and organizations depend on; supervising banks for safety, soundness, fair lending, and community reinvestment and serving as a "lender of last resort"; working to support community economic development and identify impediments to participation in the job market and economy; and conducting economic research and analysis to support monetary policymaking, in pursuit of the dual mandate from Congress to promote price stability and maximum employment.