Yes

>>Susan Collins Indicates the Federal Reserve Will Maintain Rates Longer as Economic Uncertainty Persists.

Susan Collins Indicates the Federal Reserve Will Maintain Rates Longer as Economic Uncertainty Persists.

crypthub

about 10 hours ago

Policy Outlook

Boston Fed President Susan Collins said the Federal Reserve will likely keep the federal funds rate steady for an extended period. The FOMC has held the target range unchanged since July 2024, marking the longest pause since the aggressive hikes of 2022‑23. Collins emphasized the Fed’s data‑dependent approach and the need to avoid premature easing.

Economic Drivers

Inflation remains above the 2 % goal, with core PCE at 2.6 % and CPI still elevated, while the labor market shows modest cooling—unemployment at 4.1 % and wage growth slowing to 3.8 %. GDP growth steadies around 2.3 %, providing a backdrop of moderate expansion. These mixed signals give policymakers a reason to maintain restrictive rates for now.

Market and Global Context

Financial markets reacted modestly, with Treasury yields and equity indices largely unchanged, indicating that a stable‑rate outlook was already priced in. Internationally, the ECB and BoE are also on pause, and global uncertainties—from China’s gradual recovery to commodity price volatility—inform U.S. policy. The alignment of major central banks reinforces the Fed’s cautious stance.

Future Outlook

Historical patterns suggest the Fed may hold peak rates for 12‑18 months before considering cuts. A significant shift in inflation trends, a sharp labor market deterioration, or a financial‑stability shock would likely trigger a policy change. Otherwise, gradual communication and scenario analysis point to continued rate stability through much of 2025.