BlockBeats news, February 25, Federal Reserve Bank of Boston President Susan Collins stated that, given recent economic data showing improvement in the labor market while inflation risks persist, interest rates are likely to remain unchanged “for some time.”
Collins said during a panel discussion hosted by the Federal Reserve Bank of Boston on Tuesday that the labor market is showing “at least a bit more unusual signs of stability.” She also noted that more evidence is needed to indicate that inflation is declining toward the 2% target.
“I believe maintaining the current interest rate range for some time is likely appropriate,” she said. “After accumulating 175 basis points of easing over the past year and a half, we are currently in a mildly restrictive range and may be quite close to the neutral level.”
Federal Reserve Bank of Chicago President Austan Goolsbee said that further interest rate cuts are not appropriate until there is more evidence that inflation is sustainably declining.
Goolsbee stated that the Supreme Court’s decision to overturn several of Trump’s global tariffs may bring more uncertainty to businesses but could also help curb inflation.
Goolsbee said in a speech at the National Association for Business Economics conference on Tuesday that he hopes to see evidence of inflation cooling to the Federal Reserve’s 2% target before supporting further rate cuts.
