12:41 PM EDT, 04/11/2024 (MT Newswires) -- Uncertainties in the outlook for inflation may result in later, and less, policy easing than previously thought, Boston Federal Reserve Bank President Susan Collins said Thursday in prepared remarks to the Economic Club of New York.

"Looking ahead, I remain realistically optimistic that we can achieve our dual mandate goals," Collins said. "At the same time, the slowdown in economic activity necessary for achieving price stability remains more in the forecast than in the actual data."

Consumer price data for March released on Wednesday were stronger-than-expected and producer price data released earlier Thursday, while in line with expectations, still showed an acceleration in the year-over-year growth rates. This follows a surprisingly upbeat March employment reported released on April 5, all combining to lower the outlook for near-term rate cuts.

"Overall, the recent data have not materially changed my outlook, but they do highlight uncertainties related to timing, and the need for patience - recognizing that disinflation may continue to be uneven," Collins said. "This also implies that less easing of policy this year than previously thought may be warranted."

Collins repeated that monetary policy is not on a preset course and said the Federal Open Market Committee is prepared to react to the incoming data.

"In sum, recent developments continue to highlight the importance of a patient and methodical approach, as we holistically assess available information," Collins said. "Incoming data have eased my concerns about an imminent need to reassess the stance of monetary policy. It may just take more time than previously thought for activity to moderate, and to see further progress in inflation returning durably to our target."