Feds Collins: solid economy gives Fed time to decide its next interest rate move

Forex Short News
  • Solid economy gives Fed time to decide its next interest rate move

  • It is challenging to set monetary policy right now amid uncertainty

  • It’s time for Fed to be ‘actively patient’ with monetary policy

  • Tariffs to boost inflation over second half of 2025, core inflation around 3% by year’s end

  • Tariffs will slow hiring but ‘not necessarily by a large amount’

  • Strong business, household balance sheets may blunt tariff pain

  • Good profit margins may limit tariff pass-through

  • Tariffs will weigh for a time on what is now strong economy

  • Economy is currently in a ‘good place’ overall

  • Core goods inflation showing some signs of tariff impact

Susan Collins is the president of the Boston Federal Reserve and is a voting member in 2025. “It’s time to be actively patient”, suggests that she is not in a hurry to ease policy but as her eye on the data.

It’s time to be actively patient

This article was written by Greg Michalowski at www.forexlive.com.