Fed's Collins: There is a clear path to reach the goal without a recession

Fed Collins said on Thursday that she believes the Fed has the ability to reduce inflation without triggering a recession, and hinted at support for starting to cut interest rates next month. Collins said: "I think there is a clear path to achieve our goals without an unnecessary recession and the job market continues to be healthy. It is important to maintain a healthy labor market while we continue to reduce inflation, which is one of the reasons why I think it is time to start easing monetary policy." However, Collins would not comment on the possibility that the Fed would start the easing cycle with a 50 basis point rate cut instead of the usual 25 basis points, but she emphasized the health of the job market and called for adjusting policies in a "gradual and orderly" manner, suggesting that she prefers a smaller rate cut. She said that one of the risks to the economic outlook is that if the view that the U.S. job market is cooling too quickly becomes dominant, the economy may spiral into weakness in a "self-fulfilling" way.