Josh White Sharecast News
22 Aug, 2024 14:45

Boston Fed president Collins signals her support for rate cuts

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US Federal ReserveSharecast / Manuel Velasco from Pixabay

Boston Federal Reserve president Susan Collins suggested on Thursday that it would soon be appropriate for the Fed to initiate a cycle of interest rate cuts, indicating her likely support for a rate reduction at the central bank’s upcoming policy meeting.

In an interview with Fox Business, Collins highlighted the significant progress in reducing inflation, which she believed was now on a sustainable downward trajectory.

Coupled with a generally strong labour market, Collins asserted that it was an opportune time to begin easing monetary policy.

She also emphasised the importance of a gradual and methodical approach to ensure the continued health of the labour market as the policy stance shifts.

“I think a gradual, methodical pace once we are in a different policy stance is likely to be appropriate,” Collins said.

Reporting by Josh White for Sharecast.com.

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