Boston Fed Chief Signals Rate Cut Delay
Boston Fed's Susan Collins stated she doesn't see “an urgency for additional policy adjustments,” hinting at a rate cut delay amid inflation concerns.
Collins stated that she needs to see "clear evidence" that inflation is moving towards the 2% target before she would support any rate cuts. She suggested this evidence might not appear until the second half of the year. Speaking in Springfield, Massachusetts, Collins described the current Fed policy as "well positioned" and the economic outlook as "fairly benign". She anticipates solid growth and expects inflation to ease later in 2026. However, Collins also acknowledged uncertainty in the inflation outlook, citing upside risks and potential pressures from tariffs. She noted that recent discussions about tariffs on imported goods could further complicate the inflation picture. Collins' comments came after a recent jobs report showed an unexpected loss of 92,000 non-farm payroll jobs in February. Despite this, she maintains a "fairly benign" economic outlook. The Fed's next meeting is scheduled for March 17 and 18, where policymakers will likely hold interest rates steady. Collins is not a voting member of the Federal Open Market Committee this year.
