It is soon time to start reducing rates

In an interview with Fox Business, Federal Reserve (Fed) Bank of Boston President Susan Collins said it would soon be appropriate to start cutting rates, according to Reuters.

Key recommendations

“The overall job market is pretty healthy, and I want us to keep that.”

“Unemployment is still low and jobless claims point to an orderly rebalancing.”

“The Fed is in a healthy position overall, and it’s important to keep it that way.”

“The data will guide the pace of rate cuts.”

“Inflation data is consistent with higher confidence inflation returning to 2%.

“Gradual, methodical rite of passage of cuts once we’re in a different political position is probably going to be appropriate.”

“You still see quite a lot of continued resistance among consumers, but also stress points.”

“Keeping the labor market healthy is a priority.”

Market reaction

These comments do not seem to affect the valuation of the US dollar in any noticeable way. At press time, the USD index was up 0.12% on the day at 101.25.