Fed's Collins: Changes in inflation outlook prompt support for rate cuts

Jinse Finance reported that Boston Fed President Collins stated on Monday that changes in the inflation outlook led her to support the Federal Reserve's rate cut decision last week. In a statement, Collins said: "I support last week's decision by the Federal Open Market Committee (FOMC) to lower the target range for the federal funds rate by 25 basis points, although it was a difficult choice for me. The current information indicates a slight shift in the balance of risks, and the likelihood of a scenario where inflation rises significantly further seems to have decreased." Prior to the Fed meeting, Collins had suggested that her concerns about inflation might put her on the side opposing a rate cut. She has consistently focused on the issue of inflation remaining too high and persisting far longer than the Fed's target. However, Collins' unexpectedly dovish stance this time did not translate into a new outlook for monetary policy. She pointed out: "For me, it is crucial that the forward guidance in the Committee's statement remains consistent with the wording of the December 2024 statement, after which the rate cut process was paused."