NEW YORK (Reuters) -Federal Reserve Bank of Boston President Susan Collins said Tuesday she's open to more interest rate cuts amid expectations price pressures will start to wane some time next year.

"it may be appropriate to ease the policy rate a bit further this year - but the data will have to show that," Collins said in remarks prepared for delivery before a gathering to be held at the Council on Foreign Relations in New York.

The official noted that she supported the Fed's decision to cut its interest rate by a quarter percentage point to between 4% and 4.25% earlier this month as the central bank managed risks to both its job and employment goals. But she added, "I continue to see a modestly restrictive policy stance as appropriate, as monetary policymakers work to restore price stability while limiting the risks of further labor market weakening."

The rate-setting Federal Open Market Committee trimmed the cost of short-term borrowing at its most recent gathering. It aimed to offset rising risks to the labor market with the reality that inflation remains above the central bank's target and will likely stay elevated for a while as President Donald Trump's massive trade tariffs work their way through the economy.

Over recent days, a number of Fed officials have said that while inflation risks remain due to the tariffs, price increases thus far have been less than expected. Officials have been debating whether this particular storm has largely passed or whether inflation still risks a persistent rise as firms pass on higher costs to customers.

At the Fed meeting, central bankers penciled more rate cuts into the end of the year and further easings in 2026.

Collins said in her remarks her outlook for the economy is "relatively benign" and that the currently tepid level of hiring will accelerate as companies get used to the new tariff environment. On the inflation front, "while inflation is likely to remain elevated into next year, I expect it to resume its gradual return to target over the medium term."

Collins flagged a "highly uncertain environment" and said it's possible the economy may see a mix of persistent inflation and "adverse" job market developments, although she added, "the upside inflation risks I was concerned about a few months ago are more limited."