TechFlow News, February 25: According to JIN10 Data, Susan Collins, President of the Federal Reserve Bank of Boston, stated on February 25 that interest rates are likely to remain unchanged “for some time,” given recent economic data showing improvement in the labor market while inflationary risks persist.
Speaking at a panel discussion hosted by the Federal Reserve Bank of Boston on Tuesday, Collins said the labor market is exhibiting “at least some additional signs of unusual stability.” She also noted that more evidence is needed to confirm that inflation is trending downward toward the 2% target.
“I believe it is likely appropriate to hold the current rate range steady for some time,” she said. “After a cumulative easing of 175 basis points over the past year and a half, we are currently in a modestly restrictive range—and may already be quite close to neutral.”
Austan Goolsbee, President of the Federal Reserve Bank of Chicago, stated that further rate cuts would be inappropriate until there is more evidence confirming a sustained decline in inflation.
Goolsbee added that the Supreme Court’s decision to overturn several of Trump’s global tariffs could introduce greater uncertainty for businesses but might also help curb inflation.
In a speech delivered Tuesday at the National Association for Business Economics (NABE) conference, Goolsbee said he wants to see concrete evidence that inflation has cooled to the Fed’s 2% target before supporting additional rate cuts.
