Feds Collins: Expects demand will need to slow to get inflation to 2%

Boston Fed President Susan Collins is speaking and says:

• Expects demand will need to slow to get inflation to 2%.
• Fed policy well-positioned for current Outlook.
• Monetary policy is moderately restrictive.
• There are risks to cutting rates too soon.
• Doesn’t expect productivity jumped to be persistent.
• Firms well-positioned to absorb faster wage growth.
• Recent inflation setbacks are not a surprise.
• Optimistic Fed can get 2% inflation in reasonable timeframe.
• Economy is robust job market coming into better balance.

Comments from Fed’s Collins supports no hike, but not in a hurry to cut rates soon either. Collins is NOT a voting member in 2024

Yields in the US remain modestly higher:

• 2-year yield 4.826%, -0.2 basis points
• 5-year yield 4.486%, +1.6 basis points
• 10 year yield 4.481%, +2.1 basis points
• 30-year 4.624%, +2.0 basis points

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