Collins stays cautious after PCE, signaling no immediate rate hike
📊 Boston Fed President Susan Collins said July PCE inflation at 3.7% YoY still presented a “mixed” picture despite remaining above the 2% target. She noted that part of the increase came from fees linked to asset prices rather than broad-based pricing pressure across the economy.
🏦 Collins described the current 3.50–3.75% policy range as “mildly restrictive” and said her base case remains for inflation to gradually ease if rates stay where they are.
⚖️ However, she remains open to supporting a rate increase if upcoming data fail to show continued disinflation. That keeps the Fed firmly data-dependent rather than signaling a clear shift in policy.
👀 For markets, Collins’ remarks are unlikely to materially change rate expectations, with attention now turning to August data and the Fed’s next policy signals.
#FederalReserve
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📊 Boston Fed President Susan Collins said July PCE inflation at 3.7% YoY still presented a “mixed” picture despite remaining above the 2% target. She noted that part of the increase came from fees linked to asset prices rather than broad-based pricing pressure across the economy.
🏦 Collins described the current 3.50–3.75% policy range as “mildly restrictive” and said her base case remains for inflation to gradually ease if rates stay where they are.
⚖️ However, she remains open to supporting a rate increase if upcoming data fail to show continued disinflation. That keeps the Fed firmly data-dependent rather than signaling a clear shift in policy.
👀 For markets, Collins’ remarks are unlikely to materially change rate expectations, with attention now turning to August data and the Fed’s next policy signals.
#FederalReserve
$USDT $USDC $USDS
