{"id":61897,"date":"2026-05-13T12:38:22","date_gmt":"2026-05-13T16:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-collins-warns-of-prolonged-inflation-as-house-targets-dual-mandate-trump-begins-beijing-visit\/61897\/"},"modified":"2026-05-13T12:38:22","modified_gmt":"2026-05-13T16:38:22","slug":"feds-collins-warns-of-prolonged-inflation-as-house-targets-dual-mandate-trump-begins-beijing-visit","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-collins-warns-of-prolonged-inflation-as-house-targets-dual-mandate-trump-begins-beijing-visit\/61897\/","title":{"rendered":"Fed\u2019s Collins Warns of Prolonged Inflation as House Targets Dual Mandate; Trump Begins Beijing Visit"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Boston Fed President Susan Collins warned that inflation may remain elevated until 2027<\/strong>, suggesting the central bank may need to maintain restrictive policy or even <strong>resume interest rate hikes<\/strong> to reach its 2% target.<\/li>\n<li><strong>The House Financial Services Committee is considering a bill to eliminate the Federal Reserve\u2019s dual mandate<\/strong>, which would shift the central bank&#39;s legal focus exclusively to <strong>price stability<\/strong> rather than both employment and inflation.<\/li>\n<li><strong>A new Federal Reserve survey revealed that 20% of Americans faced financial fraud in 2025<\/strong>, resulting in a staggering <strong>$56 billion in unrecovered losses<\/strong>, even as 73% of adults report they are &quot;doing okay&quot; financially.<\/li>\n<li><strong>Geopolitical tensions remain high as a Chinese oil tanker successfully crossed the Strait of Hormuz<\/strong> just as President Trump\u2019s high-stakes visit to Beijing commenced, signaling a potential shift in energy security dynamics.<\/li>\n<li><strong>Generative AI adoption is surging in the workforce<\/strong>, with 25% of employees using the technology monthly; meanwhile, PayPal (<a href=\"\/stock\/PYPL\">PYPL<\/a>) announced a strategic partnership with <strong>Anthropic<\/strong> to scale AI tools for small businesses.<\/li>\n<\/ul>\n<h2>Fed Policy and Legislative Shifts<\/h2>\n<p>Boston Fed President <strong>Susan Collins<\/strong> delivered a series of hawkish remarks today, stating that <strong>inflation may not subside significantly this year<\/strong> and could remain a concern through 2027. Collins emphasized that the Federal Reserve is &quot;well positioned&quot; but warned that <strong>rate hikes could return<\/strong> if the inflation outlook does not improve. She noted that while <strong>robust productivity improvements<\/strong>\u2014not solely driven by AI\u2014are helping, the ongoing war in the Middle East continues to pose a significant <strong>energy shock risk<\/strong> to global growth.<\/p>\n<p>Simultaneously, the <strong>House Financial Services Committee<\/strong> is moving to amend the <strong>Federal Reserve Act<\/strong> to strip the central bank of its dual mandate. According to reports from the <em>Wall Street Journal<\/em>, the proposed bill would force the Fed to focus <strong>solely on price stability<\/strong>. Critics and analysts are already questioning if the Fed would have been able to cut rates last year had this singular focus been the law of the land, as <em>market participants weigh the potential for increased volatility in labor markets.<\/em><\/p>\n<h2>Economic Sentiment and the Fraud Crisis<\/h2>\n<p>The Federal Reserve\u2019s annual <strong>Survey of Household Economics and Decisionmaking (SHED)<\/strong> for 2025 highlights a growing disconnect between personal and national economic sentiment. While <strong>73% of adults reported living comfortably<\/strong>, only <strong>26% viewed the national economy as &quot;good&quot; or &quot;excellent,&quot;<\/strong> a sharp decline from 50% in 2019. Financial anxiety is rising, with <strong>42% of adults expressing concerns about job security<\/strong>, up from 37% the previous year.<\/p>\n<p>The report also detailed a massive surge in <strong>financial fraud<\/strong>, with one in five Americans targeted in 2025. Total unrecovered losses hit <strong>$56 billion<\/strong>, a figure that has caught the attention of regulators. Despite these pressures, the survey found that <strong>63% of respondents<\/strong> could still cover a <strong>$400 emergency expense<\/strong> using cash or its equivalent, a figure that has remained stable since 2024.<\/p>\n<h2>Energy, Geopolitics, and Corporate Developments<\/h2>\n<p>In the energy sector, <strong>Russia&#39;s ESPO blend crude exports<\/strong> from the Kozmino port are projected to rise to <strong>4.3 million tons in May<\/strong>, up from 4.1 million in April. In the U.S., Representative <strong>Nicole Malliotakis (R-NY)<\/strong> is preparing a <strong>gas tax holiday bill<\/strong> to provide a 90-day suspension of federal taxes, as Republicans scramble to address high energy costs. This comes as a <strong>Chinese oil tanker<\/strong> successfully navigated the <strong>Strait of Hormuz<\/strong>, a move <em>CNN<\/em> reports is a significant backdrop to President Trump&#39;s arrival in Beijing for diplomatic talks.<\/p>\n<p>On the corporate front, Meta (<a href=\"\/stock\/META\">META<\/a>) introduced <strong>&quot;Instants&quot; on Instagram<\/strong>, a real-time photo-sharing feature designed for close friends. In the fintech space, PayPal (<a href=\"\/stock\/PYPL\">PYPL<\/a>) is teaming up with <strong>Anthropic<\/strong> to integrate the <strong>Claude AI model<\/strong> for small business users. Additionally, the <strong>Department of War<\/strong> (formerly Defense) has signed new framework agreements with <strong>Anduril<\/strong> and other disruptive firms to expand the production of <strong>low-cost containerized missiles<\/strong> and hypersonic strike capabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Boston Fed President Susan Collins warned that inflation may remain elevated until 2027, suggesting the central bank may 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