Boston Fed President Collins: Appropriate to keep policy rates at current level for 'some time'

Core Insights - Boston Fed President Susan Collins indicates that it is likely appropriate to maintain current policy rates for some time, describing monetary policy as mildly restrictive [1] - Collins highlights that financial conditions are supportive of economic growth, with economic activity remaining robust, but warns that additional monetary support could hinder the return of inflation to the Federal Reserve's 2% target [2] - There is a notable divide among Federal Reserve officials regarding potential rate cuts, with a critical mass opposing immediate cuts or advocating for a more cautious approach [4][6] Monetary Policy Stance - Collins expresses hesitance to ease monetary policy further without clear evidence of labor market weakening, emphasizing the need to assess the impact of previous rate cuts [3] - The current probability of a December rate cut has slightly decreased from 64% to 61% following Collins' comments, indicating market uncertainty [5] Labor Market and Inflation - Collins acknowledges downside risks to employment but notes that these risks have not increased since the summer, suggesting stability in the labor market [2] - The upcoming December inflation report, scheduled for release on December 17th, will be crucial for determining the Fed's next steps [5]