Fed’s Collins hesitant on December rate cut

Investing.com -- Federal Reserve Bank of Boston President Susan Collins indicated Friday that current monetary policy is appropriate given economic conditions, suggesting she may not support another interest rate cut at the December meeting.

In a CNBC interview, Collins described the current "mildly restrictive policy" as "very appropriate right now," noting that maintaining current rates would help ensure high price pressures eventually moderate as tariff impacts work through the economy.

Collins expressed hesitation about the next Federal Open Market Committee meeting, stating she is "hesitant to get too far ahead with rate cuts while inflation still high."

Regarding economic conditions, Collins characterized the September jobs data as "mixed" and said she "wasn’t surprised to see rise in September unemployment rate." While acknowledging the job market has "clearly softened," she emphasized the unemployment rate remains "relatively low."

Collins pointed out that "inflation remains elevated" and warned that "resilient demand could put pressure on prices." She believes rate cuts already implemented have "helped address risks" and noted that financial conditions are currently "accommodative."

On the diversity of perspectives within the Federal Reserve, Collins stated that "a range of views on Fed is healthy."

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