TechFlow News, January 9 — According to Jinshi News, Boston Fed President Collins stated that given strong employment data and persistent inflation, the pace of rate cuts in 2025 will be smaller than previously expected. She believes there may only be two rate cuts this year, fewer than the four cuts projected in September last year. The current benchmark interest rate is in the target range of 4.25% to 4.5%, which is now closer to neutral levels.
Collins emphasized that although inflation is expected to continue declining, upside risks have increased, and the fiscal policy uncertainty under the new Trump administration poses challenges to economic forecasting. She noted that the U.S. economy is generally in a "good state" and concerns about the labor market have eased.
