Federal Reserve's Collins hinted at the need to continue tightening policies, stating that combating inflation takes precedence over the housing crisis

Boston Federal Reserve President Collins hinted on Friday that tightening monetary policy may be necessary to cool down prices. In a speech focused on the housing market, Collins stated that higher interest rates could limit housing affordability. However, she also added that ensuring price stability in the long run would benefit both the housing market and the overall economy.

"In the short term, higher interest rates that may be needed to cool the economy and control inflation can sometimes make the costs of buying and building homes higher," Collins stated in her speech, "but in the long run, stable prices can create a predictable economic environment, which is beneficial for the housing market."