Fed’s Collins says:
- Repeats it will likely become appropriate to begin easing policy later this year.
- Recent economic data highlight that progress toward the Fed’s goals could continue to be bumpy.
- More time is needed to discern if the economy is sustainably on the path to price stability and a healthy labor market.
- States the need to see more evidence that the disinflationary process will continue before starting to carefully normalize policy.
- Expecting all of the data to speak uniformly is too high a bar; shouldn’t overreact to individual data readings.
- The return to 2% will likely require demand growing at a more moderate pace this year.
- Wants to see continued evidence that wage growth is not contributing to inflationary pressures.
- In assessing inflation progress, will look for inflation expectations remaining well anchored and an orderly moderation in labor demand.
- Wants to see continued declines in housing inflation and non-shelter services inflation.
- The threat of inflation remaining above 2% has receded.
Collins tends to tilt a little more dovish, but like other officials does not see a cut imminently.
This article was written by Greg Michalowski at www.forexlive.com. Source