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post: FED’S COLLINS: TOO SOON TO SAY IF INFLATION IS RETREATING AGAIN TO 2% || FED’S COLLINS: RECENT INFLATION DATA HAS BEEN ENCOURAGING || FED’S COLLINS: U.S. CENTRAL BANK HAS MADE NOTABLE PROGRESS LOWERING INFLATION FED’S COLLINS: ECONOMY HAS BEEN REMARKABLY RESILIENT || FED’S…Takeaways from Boston Fed President Susan M. Collins’ Remarks Collins is encouraged by recent economic data that suggests demand and supply are coming into better balance. Still, the appropriate approach to monetary policy continues to require patience. Collins says recent economic information is encouraging, after the string of higher-than-expected inflation readings during the first quarter of 2024. The data suggest an economy with demand and supply coming into better balance, as needed to restore price stability. However, she says, this process may take more time than previously thought. It is still uncertain whether inflation is durably on a path back to the 2 percent target. The appropriate monetary policy approach continues to require patience, providing time for a methodical assessment of the evolving constellation of available data.
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The Federal Reserve is risking tipping the economy into contraction by not cutting interest rates now, according to the author of a time-tested rule for when recessions happen. Economist Claudia Sahm has shown that when the unemployment rate’s three-month average is half a percentage point higher than its 12-month low, the economy is in recession. As the ...
Sessions