Federal Reserve Bank of Boston President Susan Collins stated Wednesday she anticipates the central bank will reduce interest rates later this year.
In a statement Collins said, “While I continue to expect it will be appropriate to resume gradual policy normalization later this year, my outlook could change significantly as events unfold, and the economic impact of changes in various government policies comes into sharper focus.”
Collins noted that the timing of rate cuts would be influenced by economic developments, particularly regarding inflation. “Much will depend on whether the ’price shock’ from tariffs dissipates quickly,” she said.
The Boston Fed president’s comments suggest that while rate cuts remain on the table for 2025, the exact timing will depend on how economic conditions evolve in the coming months.
