Boston Fed President Susan Collins indicated in an interview with the Providence Journal that if current economic data trends continue as expected, it may soon be appropriate to start adjusting monetary policy by “easing how restrictive the policy is”.
She emphasized her expectation for “continued gradual reduction” in inflation toward the 2% target, all while maintaining a healthy labor market.
Collins also noted that she anticipates interest rates to be lower in the coming years, although she refrained from providing specific details on the timing and pace of rate cuts.
She highlighted the importance of incoming data before Fed’s September meeting, stating, “We’ll have more data before our September meeting, and I don’t want to get out ahead of that.”
In her assessment, Collins remains confident in the economy’s current growth pace, which she believes should help sustain a strong labor market.
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