Boston Fed President Collins: Interest Rate Cuts Should Continue

Boston Fed President Collins' Assessments

Boston Federal Reserve President Susan Collins emphasized that the U.S. Federal Reserve should continue the process of lowering interest rates this year. However, she noted that it is also critical to keep interest rates at a certain level to maintain control over inflation.

Employment and Inflation Balance

In her speech at an event held at the Boston Fed on Tuesday, Collins stated, "While inflation risks have been somewhat brought under control, downward risks to employment have been increasing. Therefore, normalizing monetary policy a bit more this year would be a prudent step to support the labor market."

Momentum of Monetary Policy

Collins also added, "Even with some additional easing, monetary policy will still remain somewhat tight. This is suitable for ensuring that inflation trends downward after the effects of tariff measures are reflected in the economy."