In a recent statement, Federal Reserve Bank of Boston President Susan Collins expressed confidence that U.S. inflation is progressing toward the central bank’s 2% target. She emphasized the importance of a data-driven approach to monetary policy, indicating that future interest rate decisions will be based on forthcoming economic data.
“I am confident that we are on a strong trajectory to achieve our 2% inflation goal,” Collins stated. She highlighted the necessity of evaluating additional data before determining the appropriate timing for any adjustments to interest rates.
This perspective aligns with recent economic indicators. The Consumer Price Index (CPI) rose by 2.6% year-over-year in October, up from 2.4% in September, marking the first increase in annual inflation in seven months. At 3.3%, core inflation—which does not include fluctuating food and energy prices—stayed constant.
Despite the uptick, overall inflation is significantly lower than the 9.1% peak in 2022. The Federal Reserve is likely to continue its planned rate cuts in December, aiming to keep inflation near its 2% target.
Collins also noted that the economy is well-positioned, with a healthy labor market and moderated price pressures. She reiterated the Fed’s commitment to restoring price stability while supporting maximum employment.
The Federal Reserve’s next policy meeting is scheduled for December 17-18, where officials will assess the latest economic data to inform their decisions on interest rates and other monetary policy measures.
