Fed’s Collins cautions against over-reacting to recent inflation data

• Too soon to say if inflation is retreating to 2%
• Appropriate for US central bank to remain patient on mon pol
• Remains ‘realistic optimist’ on economy and mon pol
• Recent inflation data has been encouraging
• Economy has been remarkably resilient
• Restoring price stability may take more time than thought
• Inflation is still stubbornly above target

This isn’t dovish. We’re still a ways away from the Fed hike. It’s increasingly clear to me that the Fed is going to fall behind the curve. They will start to cut but it’s a long ways from 5.25-5.50% and something that is going to lift the economy.

This article was written by Adam Button at www.forexlive.com.