Federal Reserve Collins: Although the economy is stable, further easing is needed, and a rate cut in December is possible.
Susan Collins, president of the Boston Federal Reserve Bank, delivered a speech at an event at the Gerald R. Ford School of Public Policy at the University of Michigan, emphasizing that although the overall economic situation is good and inflation is expected to return to the Federal Reserve's 2% target, further rate cuts are still necessary. However, policymakers must remain cautious to avoid acting too quickly or too slowly. She pointed out that while the final outcome is still uncertain, current policies remain restrictive, and the Federal Open Market Committee is prepared to respond to inflation and employment risks, with interest rates not following a predetermined path. At the same time, Collins stated that further slowing of economic hiring is undesirable, and a rate cut in December is still possible, but the specific decision needs to be based on subsequent data. Policymakers will submit the latest interest rate and economic forecasts at their meeting on December 17-18 next month.
