Fed’s Collins: Rate Cut Possible in 2024, But Tariff Impact Is Key

On June 25, Boston Fed President Susan Collins stated that a rate cut may be appropriate later this year, but emphasized it will depend heavily on how tariffs influence inflation and the broader economy, according to FX168.

Collins noted:

"I still expect it is appropriate to gradually return to a more normal policy stance later this year... but the outlook is evolving."

She highlighted that any decision will be data-dependent, particularly on whether the tariff-driven price shocks are short-lived or persistent.

The statement underscores the Fed’s cautious approach amid mixed signals from inflation data and global policy risks.