Group 1 - The decision to cut the target rate by a quarter point to 2.25% was made on October 29 [1]

Core Viewpoint - Boston Federal Reserve President Susan Collins supports the recent interest rate cut but expresses skepticism about the extent of future cuts due to ongoing inflation threats [1][3][4] Group 1: Interest Rate Policy - Collins believes that a slight easing of interest rates was necessary to address the recent shift in risks related to inflation and employment [3] - She describes the current policy stance as "modestly restrictive," aimed at curbing growth and inflation while being mindful of labor market conditions [3][4] - There is a possibility of further easing of the policy rate this year, contingent on forthcoming data [4] Group 2: Economic Environment - Collins highlights a "highly uncertain environment" with potential for both higher inflation and adverse labor market developments [4] - Fed officials are closely monitoring the labor market, which shows signs of softening, alongside inflation risks [2][6] - Market expectations indicate a strong likelihood of another rate cut at the upcoming October meeting [7] Group 3: Labor Market and Data Collection - The Labor Department's potential government shutdown may halt data collection and releases on jobs, impacting the upcoming nonfarm payrolls report [5] - Fed Governor Philip Jefferson also supports the recent rate cut, noting that both employment and inflation risks are under pressure [6]