MNI BRIEF: Fed's Collins Sees Sept or Dec Cut This Year

Boston Fed President Susan Collins Tuesday advocated patience before lowering benchmark interest rates, noting that there are a variety of paths the economy could take this year that could make rate cuts starting in either September or December appropriate.

"I could imagine scenarios that would be consistent with both" cutting interest rates in September or December, she told Yahoo Finance in an interview ultimately advocating patience on rate cuts. "My view of how much easing might be appropriate this year has been reduced as I looked at the data," she said noting her view is consistent with the Fed's new Summary of Economic Projections issued last week. (See: MNI INTERVIEW: Fed To Cut Twice in ‘24, Start Sept.-Sheets)

"What I see in the statistical data is certainly evidence that the economy is coming into better balance. There's been some slowing in demand, but an economy that's still solid, but it's still quite mixed. There are differences across sectors. There are differences across regions," she said.