Fed’s Collins
Solid economy gives Fed time to decide its next interest rate move
It is challenging to set monetary policy right now amid uncertainty
It’s time for Fed to be ‘actively patient’ with monetary policy
Tariffs to boost inflation over second half of 2025, core inflation around 3% by year’s end
Tariffs will slow hiring but ‘not necessarily by a large amount’
Strong business, household balance sheets may blunt tariff pain
Good profit margins may limit tariff pass-through
Tariffs will weigh for a time on what is now strong economy
Economy is currently in a ‘good place’ overall
Core goods inflation showing some signs of tariff impact
Susan Collins is the president of the Boston Federal Reserve and is a voting member in 2025. “It’s time to be actively patient”, suggests that she is not in a hurry to ease policy but as her eye on the data.
It’s time to be actively patient This article was written by Greg Michalowski at www.forexlive.com.