Fed's Collins: Inflation is still too high
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Labor market consistent with full employment Economy growing at near-trend pace Sharply reduced immigration should keep labor force demand in balance Concerns about high prices are 'pervasive' among contacts That sounds like someone who will be advocating for rate cuts. This arti
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More from Fed's Collins:Strong productivity gains should help lessen inflationary pressure
The desk interprets the recent comments from Fed's Collins as a signal of improving productivity and a less aggressive inflation outlook, which may support a soft-landing scenario for the economy. Per the full note [source], Collins emphasized that productivity gains are not solely AI-driven, indicating a broader improvement in supply-side conditions. This perspective aligns with our view that inflationary pressures may ease, allowing for sustained economic growth without the need for drastic policy measures. Current consensus targets from major firms suggest a range that reflects this cautious optimism, with upcoming economic indicators likely to influence market sentiment.
Feds Collins:It’s possible the Fed will need to hike rates to cool inflation pressures
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