Feds Collins on Bloomberg TV says:
- Inflation will continue to come down with a healthy labor market, but it will take some time
- Fed policy not on preset path
- Fed must be patient but it might take more time on inflation
- Very optimistic that inflation will come down
- Risks are two-sided on policy
- Wage growth has been faster than pre-pandemic levels
- Wage growth is still consistent with inflation falling back down toward 2%
- Must be cautious against moving too quickly
- Monetary policy is modestly restrictive
- At some point it would be appropriate to ease, but we are not at that point yet
- Baseline is to cut rates later this year
- Timing of presidential election does not hinder Fed policy
- Consumption and demand has remained relatively strong.
- Fed policy will be data dependent.
- What greater confidence on Powell before they change policy stance
- No urgency on rate cuts. See lots of reasons for patients
- Over time Fed will cut rates, but cannot say that what specific levels.