Fed's Collins (non-voter) says expects demand will need to slow to get inflation to 2%; Fed policy is well positioned for current outlook, says it is "moderately restrictive"; there are risks to cutting rates too soon
- Doesn't expect productivity jump to be persistent.
- Firms are well positioned to absorb faster wage growth.
- Recent inflation setbacks are not a surprise.
- Optimistic Fed can get 2% inflation in reasonable time frame.
- Economy is robust and job market is coming into better balance.
Analysis details (16:48)
- Collins is speaking live here at MIT.
- On April 12th (here and here), Collins said policy was moderately restrictive and said that she sees in "the range of two" rate cuts this year, whilst caveating that a rate hike is cannot be fully priced out.
08 May 2024 - 16:45- Fixed IncomeImportant- Source: Newswires
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