PANews|11月 12, 2025 23:15
[Federal Reserve's Collins: Keeping interest rates unchanged for a period may be an appropriate approach]
According to Jintou News, Boston Federal Reserve President Collins, who is a voting member of this year's FOMC, stated on Wednesday that she believes the threshold for further rate cuts in the short term is 'relatively high' due to concerns about inflation remaining elevated. Collins voted in favor of a rate cut last month. 'Unless there are clear signs of significant deterioration in the labor market, I will remain cautious about further easing of policy, especially given the limited inflation data we have due to the government shutdown... In the current highly uncertain environment, to balance the risks of inflation and employment, maintaining policy rates at the current level for a period may be an appropriate approach.' Her remarks highlight the deep divisions within the Federal Reserve. Since the last rate cut, several voting and non-voting Fed officials, including Collins, have signaled increasing caution about further rate cuts. Collins believes that short-term borrowing costs are currently in a 'mildly restrictive' range, while overall financial conditions still provide tailwinds for economic growth. The labor market has indeed shown signs of slowing, but downside risks have not intensified since the summer. (Jintou Data APP)
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