Fed’s Collins says now is time for patient, gradual approach to rate cuts

New York: So, Susan Collins, the Boston Fed President, just shared her thoughts on the economy. She’s saying we need to be careful with rate cuts because there’s a lot of uncertainty out there.

She pointed out that the economy is doing pretty well overall. But, she believes we should take a slow and steady approach to any changes in policy. It’s all about being patient, you know?

Collins mentioned that inflation has dropped a lot since last year, which is good news. But it’s still a bit of a bumpy road to get back to the Fed’s 2% target. The job market is holding up, too, which is a relief.

Her comments come after the Fed recently lowered interest rates a bit. But there’s still a lot of chatter about whether they’ll cut rates again soon. With Trump back in the picture, there’s concern that his policies could push inflation up again, making things trickier for the Fed.

Collins didn’t give any solid predictions about future rate changes. She just said that the Fed isn’t locked into any specific plan and is ready to adapt as needed. It seems like she’s expecting inflation to stick around longer than she thought before.