Boston Fed President Susan Collins suggested that the recent economic data do not necessitate an immediate adjustment in monetary policy, indicating that less easing might be required this year than previously anticipated.
At an even overnight, Collins highlighted that while recent data have not significantly altered her economic outlook, they but “highlight uncertainties related to timing” of economic developments. She stressed the importance of patience, acknowledging that “disinflation may continue to be uneven”.
“This also implies that less easing of policy this year than previously thought may be warranted,” she added.
Furthermore, “incoming data have eased my concerns about an imminent need to reassess the stance of monetary policy,” she explained. And, “it may just take more time than previously thought for activity to moderate, and to see further progress in inflation returning durably to our target.”
