Fed's Collins: Soon is appropriate to begin cutting rates

Eren Sengezer FXStreet

In an interview with Fox Business, Federal Reserve (Fed) Bank of Boston President Susan Collins said that it will soon be appropriate to begin cutting rates, per Reuters.

Key takeaways

"Labor market overall is quite healthy, and want to preserve that."

"Unemployment is still low and jobless claims indicate orderly rebalancing."

"Fed is in a healthy position overall and important to preserve that."

"Data will guide pace of rate cuts."

"Data on inflation are consistent with more confidence inflation getting back to 2%."

"Gradual, methodical pace of cuts once we are in different policy stance likely to be appropriate."

"Still see quite a bit of continued resilience among consumers, also stress pockets though."

"Preserving healthy labor market is a priority."

Market reaction

These comments don't seem to be impacting the US Dollar's valuation in a noticeable way. At the time of press, the USD Index was up 0.12% on the day at 101.25.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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