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

Deep Tide TechFlow News, February 25 — According to Jinshi Data, Boston Federal Reserve Chair Susan Collins stated that given recent economic data showing improvements in the labor market, while inflation risks still exist, interest rates are likely to remain “unchanged for a period of time.”

On Tuesday, Collins said during a panel discussion hosted by the Boston Fed that the labor market is showing “at least some unusual signs of stability.” She also noted that more evidence is needed to confirm that the inflation rate is heading toward the 2% target.

“I believe it’s likely appropriate to keep the current interest rate range unchanged for a period of time,” she said. “After a cumulative easing of 175 basis points over the past year and a half, we are currently 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.

During a speech at the National Business Economics Association meeting on Tuesday, Goolsbee said he hopes to see evidence of inflation cooling to the Fed’s 2% target before supporting further rate cuts.