The Federal Reserve Bank of Boston President Susan Collins said on Tuesday that the Fed may cut interest rates further as inflation shows signs of weakening.
“Further adjustments to policy may be needed,” Collins said in prepared remarks at a conference held at his bank.
Referring to the FED’s latest estimates, Collins noted that officials had anticipated a half-point rate cut by the end of the year at their September policy meeting. However, Collins emphasized that monetary policy remains flexible, saying, “Policy is not on a predetermined path and will be adjusted as the economy develops, and will remain carefully>
On wage increases, Collins acknowledged that these increases remain high, but said that rising productivity levels have helped prevent these wage increases from becoming a significant driver of inflation.
*This is not investment advice.
