Fed’s Collins: December rate cut not guaranteed

Boston Fed President Susan Collins signaled in a WSJ interview that a rate cut in December is “certainly on the table. However, it remains far from being a “done deal”.

She emphasized the importance of upcoming economic data in shaping the Fed’s decision-making process, noting, “There’s more data that we will see between now and December, and we’ll have to continue to weigh what makes sense.”

Collins underlined her pragmatic approach, explaining, “I don’t see an argument for maintaining restrictive policy when there is not evidence of new price pressures.”

However, she also acknowledged that the inflationary dynamics that have persisted over the past year are “perhaps unevenly and gradually resolving over time.”