MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought
The Federal Reserve has time to be patient before cutting interest rates and the latest elevated inflation readings reinforce the need for caution, Boston Fed President Susan Collins said Friday, although she’s still optimistic the disinflation process will continue.
“We’re going to have to be patient and it may take more time,” Collins told Bloomberg TV. She still sees cuts “later this year but later than I had been thinking” after this week delivered a third month of hotter-than-expected CPI figures. She noted she is seeing much less reason for concern in the labor market.
“It doesn’t change my baseline outlook that inflation will continue to come down. It’s premature to see if the numbers we saw are a bump on the path or something more concerning.” (See MNI INTERVIEW: One Fed Cut Most Likely 2024 Outcome-Keister)