FED: Boston's Collins Not Swayed By Payrolls Data, Seems In Dovish Hold Camp

Boston Fed Pres Collins (2025 FOMC Voter) - who previously suggested she wouldn't support a December rate cut - says on CNBC that the latest jobs data hasn't really changed her view. As such, there's a clear division on the Committee between a hold-leaning set of regional Presidents (Collins and Goolsbee have suggested since the September payrolls data that they still wouldn't support a December cut, and Musalem and Schmid are even more hawkish than they are), and the FOMC core which we still think is more inclined to cut (NY's Williams today).

• Collins says of the jobs data: "It was from September, and it was mixed. It didn't significantly change what I'm seeing. What it showed is a bit more job growth, perhaps, than I'd expected... the unemployment rate ticked up. That wasn't a big surprise, and some of that seems to be higher labor force participation. So I'm still really focused on the weekly claims data, which I think helps to give a pulse of how things are evolving."
• On the upcoming rate decision: "I think a mildly, moderately, mildly restrictive policy is very appropriate right now... that makes me hesitant as I look forward to think about what the next policy move should be. ..here's some reasons why I'm hesitant, but again, I'm going to feature factor in all of the different information. One of them is that resilient demand that I talked about that could put pressures on prices and cause firms to pass more of the tariffs through. You know, at the same time there is weakness for many consumers, especially lower income, watching that really carefully, and what that really seems tied to is high price levels."
• That said she seems in the "dovish hold" camp, still eyeing further cuts further down the line: "My baseline says that maintaining mildly restrictive policy is appropriate to ensure that we get that disinflation and then over time, I would absolutely expect to normalize further, but I think doing so cautiously, gradually is appropriate, and I'm hesitant to get too far out ahead, given the moves we've already made and some of the inflation concerns that I hear."