MNI BRIEF: Fed's Collins Urges Patience On Judging Inflation

Federal Reserve Bank of Boston President Susan Collins on Tuesday urged patience to see if the encouraging recent price data mean inflation is on a sustained path back to the Fed's 2% target.

"I see recent information as encouraging, after the string of higher-than expected inflation readings during the first quarter of 2024. In my view, the data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought," she said in remarks prepared for a Lawrence Partnership event in Lawrence, Massachusetts.

"It is too soon to determine whether inflation is durably on a path back to the 2% target," she said. "The appropriate approach to monetary policy continues to require patience, providing time for a methodical and holistic assessment of the evolving constellation of available data." FOMC officials last week showed they were split between one, two and no hikes this year after disinflation progress slowed. (See: MNI INTERVIEW: Fed To Cut Twice In '24, Start Sept - Sheets)