Federal Reserve officials: Interest rates are likely to remain unchanged for some time, and further rate cuts require evidence of inflation falling to the 2% target
According to Jinshi Data, Boston Fed President Susan Collins stated that, given recent economic data showing improvements in the labor market while inflation risks remain, interest rates are likely to "stay unchanged for some time."Collins mentioned during a panel discussion hosted by the Boston Fed on Tuesday that the labor market is showing "at least a bit more unusual signs of stability." She also pointed out that more evidence is needed to indicate that the inflation rate is moving toward the 2% target."I think it is likely appropriate to maintain the current interest rate range for some time," she said, "after a cumulative easing of 175 basis points over the past year and a half, we are currently in a mildly restrictive range and may be quite close to neutral levels."Chicago Fed President Austan Goolsbee stated that it is not appropriate to lower interest rates further until there is more evidence that inflation is consistently declining.Goolsbee noted that the Supreme Court's decision to overturn several global tariffs imposed by Trump could create more uncertainty for businesses but may also help to curb inflation.During a speech at the National Association for Business Economics conference on Tuesday, Goolsbee expressed his hope to see evidence of inflation cooling to the Fed's 2% target before supporting further rate cuts.