Fed’s Collins in the range of two rate cuts this year

In a Reuters interview, Boston Fed President Susan Collins revealed that she “in the range of two” rate cuts for this year, as per the quarterly forecast she submitted during the Fed’s March meeting.

Collins was clear that an increase in interest rates is “not part of my baseline”. However, she remained open to adjustments based on upcoming economic data, emphasizing, “I don’t think you can take possibilities as not being on the table, it really depends on where the data take us.”

Looking ahead, Collins anticipates slowdown in demand which she expects to continue into 2024. She believes this deceleration will be crucial in reducing inflationary pressures later in the year.