Fed’s Collins Says Cut Was Close Call, Balance of Risks Shifted

Federal Reserve Bank of Boston President Susan Collins said she supported last week’s interest rate reduction, but the decision was a “close call” because she remains concerned about elevated inflation.

“While my analysis in November had leaned toward holding policy steady, by the December meeting, available information suggested the balance of risks had shifted a bit,” Collins said Monday in a post on LinkedIn.

“Scenarios with a notable further rise in inflation seem somewhat less likely,” she said. “This reflects the decline in some measures of longer-term inflation expectations, recent trade-policy changes suggesting a lower effective tariff rate, and a ...