Fed's Collins
- Fed is at or near the rate hiking cycle
- Too soon to take prospect of additional hike off the table
- Bond yield rise likely reduces need for near-term Fed hike
- Latest CPI underscores uneven progress towards 2%
- Current monetary policy phase calls for patience
- Too soon to say inflation on sustainable path towards 2%
- Sees only limited progress on lower core services ex-housing inflation
- Sees evidence the labor market is rebalancing
I think this is a great summary of where the core of the Fed currently stands and it aligns with market thinking right now. Where the divergence starts is next year and whether higher rates bite and how hard.
