Fed’s Collins Says Uncertainties Point to Slower Cuts in 2025
- Ready to hold rates steady awaiting progress on inflation
- Too early to judge impact of new trade, fiscal policies
Susan Collins
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Federal Reserve Bank of Boston President Susan Collins said a slower approach to adjusting interest rates is merited now as officials confront “considerable uncertainty” over the US economic outlook.
Collins, in prepared remarks for an event Thursday in Boston, said the economy was in a “good place,” but noted that progress on cooling inflation will likely be slower this year than previously anticipated. The specter of new economic policies under the incoming Trump administration and new Congress may also change the economy’s trajectory, though it’s still too early to estimate exactly how that will play out, she said.