Federal Reserve Bank of Boston President Susan Collins said on Wednesday that it was “prudent” for Fed officials to lower rates by a half percentage point in September as inflation eases and the economy becomes more vulnerable to shocks, per Bloomberg.
Key quotes
“I saw an initial 50-basis-point rate reduction as prudent in this context, recognizing that monetary policy remains in restrictive territory,”
“Further adjustments will likely be needed.”
"I will stress that policy is not on a pre-set path and will remain carefully data dependent, adjusting as the economy evolves.”
"The recent data, including September's unexpectedly robust jobs report, bolster my assessment that the labor market remains in a good place overall – neither too hot nor too cold,”
"It will be important to preserve the currently healthy labor market conditions," she said, noting that it would "require economic activity continuing to grow close to trend, which is my baseline outlook.”
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