President of the Boston Fed. Collins: Recent data argues against looming need for rate changes

President of the Boston Fed. Susan Collins is on the networks and says:

• Recent data argues against the imminent need to change rates.
• He still expects rate cuts this year.
• It may take longer for the economy to moderate as needed.
• Economic strength could suggest a reduction in rate cuts.
• Disinflation is expected to remain uneven.
• Recent inflation data has not changed the view on the outlook.
• The strong economy could mean that Fed policy is not as restrictive as previously thought.
• A strong labor market reduces the urgency of the need for rate cuts.
• He expects inflation to continue to moderate.
• Fed policy is well positioned for today’s economy.
• The economy resilient in the face of the Fed’s rate policy; it may take longer to bring inflation back to 2%.

Collins at a voting member. Most Fed members, as well as the market, believe that cuts are still to come. The timing is uncertain. CPI data was worrying this week. The jobs report was stronger than expected. The Fed’s mandate is full employment and inflation. Both oppose lowering rates, even though they believe rates are too high/restrictive.

Earnings will now be a priority. PCE won’t be released until Friday, April 26.