Boston Fed President Susan Collins said she supported last week’s FOMC decision to lower the federal funds rate by 25 basis points, but emphasized that the decision was”a close call”. Incoming information suggests the balance of risks has shifted modestly, with scenarios involving a notable further rise in inflation “seem somewhat less likely”.
Nevertheless, Collins emphasized “it’s important to me” that the updated language now echoes the December 2024 statement, which “preceded a pause in cutting rates”.
Looking ahead, she said that with policy now at the lower end of a mildly restrictive range, she would want “greater clarity” on the inflation outlook before supporting further adjustments.
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