MNI BRIEF: Fed's Collins Shows Support For A 25BP Rate Cut

Boston Fed President Susan Collins on Tuesday said there has been a slight shift in the balance of risks and a 25 basis point cut might be appropriate, but she emphasized the need to keep a close eye on inflationary pressures. 

"What I'm seeing, which is a bit of a shift in the balance of risks, (is) that perhaps the risks on the inflation side are a bit more contained than I previously thought, but the risks on the labor market side are perhaps a bit greater. That does suggest that a bit more easing, perhaps another 25 basis points of easing, might be appropriate," she said in Q&A at an Greater Boston Chamber of Commerce event. (See: MNI INTERVIEW: Fed Right To Remain Cautious On Rate Cuts-Kohn) 

"But I don't think it's helpful to get further out ahead, and I certainly don't see policy on any kind of preset path," she said. "I really think that future decisions have to be made based on the data that are available."