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Susan Collins, president of the Federal Reserve Bank of Boston, speaks during the National Association of Business Economics (NABE) economic policy conference in Washington, DC, US, on Thursday, March 30, 2023. Ting Shen | Bloomberg | Getty Images Boston Federal Reserve President Susan Collins on Tuesday expressed support for the recent interest rate cut, but showed some skepticism on the extent of future moves as she sees continued threats from inflation. Speaking in New York, the central bank policymaker noted risks to both higher inflation and a softening labor market that are keeping officials on their toes. “In my view, a bit of easing was appropriate to address the recent shift in the balance of risks to our inflation and employment mandate,” Collins said in prepared remarks. “But I continue to see a modestly restrictive policy stance as appropriate, as monetary policymakers work to restore price stability while limiting the risks of further labor market weakening.” The “modestly restrictive” phrasing has been used by officials to describe the current stance of policy as holding back growth — and inflation — while taking heed of easing payroll gains and a gradual increase in the unemployment rate. A voter this year on the rate-setting Federal Open Market Committee, Collins noted a “highly uncertain environment” that would see “higher and more persistent inflation, more adverse labor market developments – or both.” “Still, with less scope for inflationary pressures from the labor market, the upside inflation risks I was concerned about a few months ago are more limited,” she added. “In this context, it may be appropriate to ease the policy rate a bit further this year – but the data will have to show that.” At the September meeting, Collins and her fellow officials narrowly indicated the probability of two more rate reductions…

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Filed under: News - @ September 30, 2025 1:30 pm