Federal Reserve officials: Interest rates are likely to remain "unchanged for a period of time," and further rate cuts require evidence that inflation has fallen to the 2% target.

On February 25, Boston Fed President Susan Collins stated that, given recent economic data showing improvement in the labor market and persistent inflation risks, interest rates are likely to remain “unchanged for a period of time.” Collins said during a panel discussion hosted by the Boston Fed on Tuesday that the labor market is showing “at least some unusual signs of stability.” She also noted that more evidence is needed to confirm that inflation is heading toward the 2% target. “I think it’s likely appropriate to keep the current interest rate range for a while,” she said. “After easing by a total of 175 basis points over the past year and a half, we are now in a mildly restrictive range, which may be quite close to a neutral level.” Chicago Fed President Austan Goolsbee said that further rate cuts are not appropriate until more evidence shows that inflation is continuing to decline. Goolsbee mentioned that the Supreme Court’s decision to overturn several of Trump’s global tariffs could bring more uncertainty to businesses but might also help curb inflation. Speaking at the National Business Economics Association meeting on Tuesday, he said he hopes to see evidence of inflation cooling to the Fed’s 2% target before supporting further rate cuts.