Fed Official Collins: Rates Expected to Stay Stable
In her latest remarks, Federal Reserve official Collins noted that recent job data shows promising signs. While the labor market softened last year, it hasn't slipped into weakness.
She added that although the market remains somewhat fragile, there are indications of improved resilience. This gives the Fed more time to assess whether the inflation slowdown is on a sustainable path.
Inflation Outlook Under Review
Collins stressed that the cooling of inflation hasn't been fully confirmed yet and more data is needed. However, her baseline expectation is that inflation will gradually ease later this year.
- Labor market remains resilient
- Inflation seen easing later this year
- Rates likely to stay unchanged in near term
Policy Positioning Favorable
The current monetary stance is described as slightly restrictive but nearing neutral, which allows it to manage inflation risks while offering some support if growth slows.
Overall, the Fed is expected to remain patient, waiting for clearer economic signals before taking further action.