Susan Collins, President of the Federal Reserve Bank of Boston, said that the U.S. central bank should continue lowering interest rates this year, while keeping them high enough to ensure inflation remains under control.
In prepared remarks for an event at the Boston Fed on Tuesday, Collins stated:
“While inflation risks have become somewhat more contained, downside risks to employment have increased. Therefore, it would be a prudent step to further normalize monetary policy this year to support the labor market.”
Collins added that even with some additional easing, monetary policy would remain somewhat restrictive, which she said was appropriate to ensure inflation resumes its downward trend once the effects of tariffs filter through the economy.
