Fed's Collins says latest US inflation readings are 'mixed'

The Personal Consumption Expenditures Price Index rose at a 3.7% annual rate in July, well above the Fed's target, prompting some of Collins' colleagues to say it was time for rates to rise.

Fed Chairman Kevin Warsh may address the issue on Friday in his keynote speech to the conference.

Collins said she had been watching the recent rise in bond yields, which have a direct bearing on the outlook for economic activity.

She said she did not think they showed any evidence, so far, that inflation expectations were beginning to rise.

Estimates of the inflation compensation demanded by investors or seen in the pricing of inflation-protected securities are "consistent with price stability," Collins said.

Of the broader move higher, she said it was "challenging" to specify all the factors that might be behind it.