11:57 AM EDT, 06/18/2024 (MT Newswires) -- While recent inflation data has been "encouraging," the process of lowering inflation may take longer than expected, Boston Federal Reserve Bank President Susan Collins said Tuesday at the 2024 Annual Meeting & 10th Year Anniversary of the Lawrence Partnership.

"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability," Collins said. "However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target."

Collins said uncertainty remains elevated, as does the volatility of the monthly data, suggesting caution is needed.

"We should not overreact to a month or two of promising news, just as it was not appropriate to take too much signal from the disappointing data at the beginning of this year," Collins said. "As I have often said, I remain a realistic optimist -- optimistic that we can restore price stability in a reasonable amount of time amid a labor market that remains healthy, while realistic about the risks and uncertainties to that outlook."

The correct approach to policy "continues to require patience, providing time for a methodical and holistic assessment of the evolving constellation of available data," Collins said.

Collins next votes on the Federal Open Market Committee in 2025.