Feds Collins: Inflation will come down even with a healthy labor market,but will take time

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
• 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

This article was written by Greg Michalowski at www.forexlive.com.