Boston Fed President Susan Collins signaled a clear preference for caution ahead of the December 9–10 FOMC meeting, saying she sees “reasons to be hesitant” about lowering borrowing costs again. After the 50bps of easing delivered in September and October, Collins argued on Saturday that policy is now “mildly restrictive” and appropriately calibrated to current conditions.
Collins stressed that the Fed faces a difficult balance: inflation remains above target while the job market shows visible signs of softening. She said risks exist “on both sides of the mandate,” and emphasized that more persistent weakness in employment could change her stance. “If I saw more evidence of softening and weakness, I would take that seriously,” she noted.
She also highlighted the unusually wide set of views emerging inside the Committee. “We’re in a complex period” for setting policy, Collins said, adding that a range of perspectives is healthy at a time when the economic outlook is highly uncertain.
