Federal Reserve Bank of Boston President Susan Collins with further remarks, from the Q&A after her earlier speech.
Collins said the central bank’s recent decision to “dial two notches down” on interest rates was appropriate given the balance of risks, but stressed that inflation remains too elevated for policymakers to abandon a mildly restrictive stance. Collins argued that keeping policy somewhat tight is still necessary to ensure price pressures continue to ease. She also emphasised that the Fed’s institutional independence is critical at a time of uncertainty, allowing officials to stick to a data-driven, long-term approach rather than responding to short-term political or market pressures.
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Earlier:
more to come
