12:37 PM EST, 02/28/2024 (MT Newswires) -- It is likely that the Federal Open Market Committee will ease monetary policy gradually later in 2024, assuming inflation continues to slow, Boston Federal Reserve Bank President Susan Collins said Wednesday.

"I want to see more evidence of a sustained trajectory to price stability," Collins said in a speech at the Tuck School of Business at Dartmouth College. "Still, consistent with projections from FOMC participants, I believe it will likely become appropriate to begin easing policy later this year. When this happens, a methodical, forward-looking approach to reducing rates gradually should provide the necessary flexibility to manage risks, while promoting stable prices and maximum employment."

Collins noted while goods inflation has clearly slowed, housing inflation and services inflation outside of shelter both remain elevated and need to slow toward the FOMC's 2% goal.

"To be clear, the Fed's target is 2% year-over-year growth for total [personal consumption expenditure] prices -- there are no individual objectives for the components," she said. "However, if the effects of supply chain improvements that have helped lower core goods inflation below historic levels wane, inflation in other components will need to decline for our goal to be met."

In addition, inflation expectations need to remain well-anchored and there needs to be an "orderly moderation" in labor demand, Collins said.

Collins next votes on the FOMC next year.