Fed officials' interest rate cut messages

Boston Fed President Susan Collins has given the message that if the economy progresses in line with forecasts, interest rate cuts could begin by the end of the year. Minneapolis Fed President Neel Kashkari said that she wants to see a few more months of inflation data before cutting interest rates, saying, “Two or three interest rate cuts this year may be appropriate.” Boston Fed President Susan Collins said in a speech at the Boston Economic Club that she wants to see more evidence that inflation is moving toward the target before starting to cut interest rates. Collins, who does not have a vote on the FOMC this year, said, “Monetary policy is in a good place right now. We are closely monitoring the data and the outlook. As our confidence in the economy increases, it may be appropriate to ease monetary policy toward the end of the year.” Fed Chair Jerome Powell stated in a press conference following last week’s interest rate meeting that there were no base cases for interest rate cuts in March. The Fed kept interest rates unchanged and kept them between 5.25-5.50 percent. Collins stated that demand would need to decrease for inflation to fall to the 2 percent target, and that signs of this were beginning to be seen. Collins also stated that risks in inflation and the economy were balancing. Minneapolis Fed President Neel Kashkari told CNBC that they want to see inflation drop to 2 percent in the fall, adding, “I want to follow the data for a few more months. Two or three rate cuts may be appropriate this year.”