Fed’s Collins Says It’s Prudent to Ease a Bit More in 2025 (1)

Federal Reserve Bank of Boston President Susan Collins said the US central bank should continue lowering interest rates this year to support the labor market, while keeping them high enough to make sure inflation remains in check.

“With inflation risks somewhat more contained, but greater downside risks to employment, it seems prudent to normalize policy a bit further this year to support the labor market,” Collins said Tuesday in remarks prepared for an event at the Boston Fed.

“Even with some additional easing, monetary policy would remain mildly restrictive, which is appropriate for ensuring that inflation resumes its decline once ...