Fed’s Susan Collins Calls for Patience on Fed Rate Cuts
The post Fed’s Susan Collins Calls for Patience on Fed Rate Cuts appeared on BitcoinEthereumNews.com. Federal Reserve Bank of Boston President Susan Collins has said the U.S. economy remains strong enough to delay Fed rate cut decisions. The Fed president echoed similar sentiments shared by Fed Chair Jerome Powell and Fed President Beth Hammack on a wait-and-see approach towards quantitative easing (QE). Collins Says Strong Economy Allows Delay in Fed Rate Cut The Fed president stated that the U.S. economy is strong during a speech on Tuesday at a Washington event hosted by business economists (the NABE Foundation’s 22nd Annual Economic Measurement Seminar). As such, Collins believes that the U.S. Central Bank can continue to closely monitor inflation data before deciding on any Fed rate cut or policy change. According to her, the current economic strength gives officials time to assess new developments carefully. One of those developments is the ongoing impact of tariffs. Collins acknowledged that tariffs are starting to affect the prices of some goods. However, she said the damage may be less than expected. The Fed official explained that some companies are choosing to accept smaller profit margins instead of passing costs to consumers. Meanwhile, American households are still spending even as prices rise. That spending strength is helping reduce the negative effects of tariffs on the broader economy, which in turn lowers the urgency for a Fed rate cut. She also noted that recent inflation data shows a mixed picture. June’s consumer price report showed inflation rising more slowly than economists expected. But Collins warned that price pressures from tariffs are still building in some areas. Her message aligns with the cautious stance taken by Cleveland Fed President Hammack, who also argues that inflation is still too high to justify a Fed rate cut. Cut Depends on Clearer Inflation Data To help understand these changes, the Boston Fed developed a new…
The post Fed’s Susan Collins Calls for Patience on Fed Rate Cuts appeared on BitcoinEthereumNews.com.
Federal Reserve Bank of Boston President Susan Collins has said the U.S. economy remains strong enough to delay Fed rate cut decisions. The Fed president echoed similar sentiments shared by Fed Chair Jerome Powell and Fed President Beth Hammack on a wait-and-see approach towards quantitative easing (QE). Collins Says Strong Economy Allows Delay in Fed Rate Cut The Fed president stated that the U.S. economy is strong during a speech on Tuesday at a Washington event hosted by business economists (the NABE Foundation’s 22nd Annual Economic Measurement Seminar). As such, Collins believes that the U.S. Central Bank can continue to closely monitor inflation data before deciding on any Fed rate cut or policy change. According to her, the current economic strength gives officials time to assess new developments carefully. One of those developments is the ongoing impact of tariffs. Collins acknowledged that tariffs are starting to affect the prices of some goods. However, she said the damage may be less than expected. The Fed official explained that some companies are choosing to accept smaller profit margins instead of passing costs to consumers. Meanwhile, American households are still spending even as prices rise. That spending strength is helping reduce the negative effects of tariffs on the broader economy, which in turn lowers the urgency for a Fed rate cut. She also noted that recent inflation data shows a mixed picture. June’s consumer price report showed inflation rising more slowly than economists expected. But Collins warned that price pressures from tariffs are still building in some areas. Her message aligns with the cautious stance taken by Cleveland Fed President Hammack, who also argues that inflation is still too high to justify a Fed rate cut. Cut Depends on Clearer Inflation Data To help understand these changes, the Boston Fed developed a new…
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