Federal Reserve Bank of Boston President Susan Collins emphasized the need for further interest rate reductions, suggesting the central bank remains committed to its inflation targets despite recent easing measures. Speaking at an economic forum, Collins noted that while the labor market shows resilience, persistent economic uncertainties demand a cautious approach to monetary policy adjustments.
Her comments come as the Fed continues its balancing act between sustaining growth and reining in inflation, which has shown signs of cooling but remains above the central bank’s 2% target. Analysts suggest the Fed could deliver additional rate cuts in early 2024 if economic momentum falters, aligning with Collins’ call for gradual adjustments. Investors are now closely monitoring upcoming data releases for clarity on the Fed’s next steps.
