NEW YORK (Reuters) -Federal Reserve Bank of Boston President Susan Collins said Tuesday monetary policy is in the right place.

In remarks focused on the housing industry, the bank president noted that the "modestly restrictive" stance of monetary policy is "necessary" even as it has weighed on the housing market and thwarted efforts to improve the supply of homes. "Price stability is essential to foster sustained growth, a strong labor market and an economy that works for all," she said.

Collins' remarks came from a speech prepared for delivery before an event on housing issues.