financetom
Economy
financetom
/
Economy
/
Fed's Collins still favors additional rate cuts to aid job market
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Collins still favors additional rate cuts to aid job market
Oct 14, 2025 1:06 PM

(Reuters) -Federal Reserve Bank of Boston President Susan Collins reiterated Tuesday that rising risks to the job market support additional central bank interest rate cuts in what remains an uncertain economic environment.

"With inflation risks somewhat more contained, but greater downside risks to employment, it seems prudent to normalize policy a bit further this year to support the labor market," Collins said in the text of a speech to be delivered before a gathering in Boston.

Even with more rate cuts, "monetary policy would remain mildly restrictive, which is appropriate for ensuring that inflation resumes its decline once tariff effects filter through the economy," Collins said.

Collins' comments on the economy and monetary policy come after the Fed cut its overnight interest rate target range by a quarter percentage point, to between 4% and 4.25%, last month. Officials penciled in 50 more basis points' worth of cuts into the end of the year, as the Fed seeks to help buoy the job market while still dealing with inflation that's well above the 2% target.

Collins cautioned in her remarks that the future remains unclear, noting "policy is not on a pre-set path, and I can envision scenarios where appropriate policy calls for holding rates steady later this year and into next, as we assess effects of the recent policy actions and get more information."

The official said that looking ahead, her economic outlook is "relatively benign" with continued activity gains, a small rise in unemployment joined with elevated inflation that eases next year as tariff impacts are passed through the economy.

But Collins cautioned that "I do not rule out scenarios featuring higher and more persistent inflation, more adverse labor market developments, or both."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US small business sentiment nears 3-1/2-year high in November
US small business sentiment nears 3-1/2-year high in November
Dec 10, 2024
WASHINGTON (Reuters) - U.S. small-business confidence surged to the highest level in nearly 3-1/2 years in November amid post-election euphoria. The National Federation of Independent Business (NFIB) said on Tuesday its Small Business Optimism Index jumped 8.0 points to 101.7 last month, the highest level since June 2021. Donald Trump won the race for the White House and his Republican...
Federal Reserve to cut rates by 25 bps on Dec. 18, pause in January- Reuters poll
Federal Reserve to cut rates by 25 bps on Dec. 18, pause in January- Reuters poll
Dec 10, 2024
By Indradip Ghosh BENGALURU (Reuters) - The U.S. Federal Reserve will cut interest rates by 25 basis points on Dec. 18, according to 90% of economists polled by Reuters, with most expecting a pause in late January amid concerns about rising inflation risks. President-elect Donald Trump's proposed policies, from import tariffs to tax cuts, are expected to be inflationary. Trump...
US third-quarter unit labor costs revised sharply lower
US third-quarter unit labor costs revised sharply lower
Dec 10, 2024
WASHINGTON (Reuters) - U.S. unit labor costs grew far less than initially thought in the third quarter, pointing to a still favorable inflation outlook even though price increases have not moderated much in recent months. Unit labor costs - the price of labor per single unit of output - increased at a 0.8% annualized rate last quarter, the Labor Department...
US Dollar Rises Early Tuesday Ahead of Productivity, Redbook Same-Store Sales Data
US Dollar Rises Early Tuesday Ahead of Productivity, Redbook Same-Store Sales Data
Dec 10, 2024
07:46 AM EST, 12/10/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Tuesday ahead of the release of revised productivity data for Q3 at 8:30 am ET and weekly Redbook same-store sales at 8:55 am ET. Earlier Tuesday, the National Federation of Independent Business reported that small business confidence surged to a 3-1/2 year high...
Copyright 2023-2026 - www.financetom.com All Rights Reserved