MNI BRIEF: Fed's Collins Needs More Inflation Clarity To Cut

Federal Reserve Bank of Boston President Susan Collins said Monday she needs more evidence that inflation is cooling before supporting another interest rate cut. 

"Given a policy stance that is at the lower end of a range I view as mildly restrictive, I would want greater clarity about the inflation picture before adjusting policy further, to ensure a timely return of inflation to the Committee’s 2% objective," she said in a LinkedIn post. 

Last week's 25 bp cut was a "close call," Collins said, adding she was swayed by evidence "the balance of risks had shifted a bit." The risk of inflation rising further "seem somewhat less likely" while some recent data and anecdotal evidence suggest "pockets of fragility" in the labor market, especially among smaller businesses.  

"Still, with nearly five years of elevated inflation, I remain concerned about potential inflation persistence," she said. (See: MNI: Fed Biased To Ease With Focus On Jobs - Ex-Officials)