(Bloomberg) — The US Federal Reserve could begin easing interest rates if inflation continues on its downward path amid a strong labor market, Boston Fed President Susan Collins said in an interview with the Providence Journal.
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“If the data continue the way that I expect, I do believe that it will be appropriate soon to begin adjusting policy and easing how restrictive the policy is,” Collins said. “My outlook is for continued gradual reduction back to our 2% target amid a healthy labor market.”
The US labor market remains strong even though the latest jobs figures came in softer than predicted, Collins added. She also cautioned that inflation is returning to the 2% target, albeit at a slower rate than expected.
Collins said that she expects interest rates to be lower in the next few years. However, she declined to give more detail on the timing and pace of the easing.
Collins also said:
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“We’ll have more data before our September meeting, and I don’t want to get out ahead of that.”
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“The economy is growing at a pace that I think should preserve that solid labor market.”
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