On June 25, Boston Fed President Collins stated that she expects the Federal Reserve to cut interest rates later this year. In a statement released by the bank, Collins said: “While I still anticipate that a gradual normalization of policy will be appropriate later this year, my outlook may change significantly as events unfold, and the impact of various government policy changes on the economy becomes more pronounced. This largely depends on whether the ‘price shock’ from tariffs can dissipate quickly.”
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The Federal Reserve (FED) officials expect a rate cut by the end of the year, with tariff impacts being a key factor.
On June 25, Boston Fed President Collins stated that she expects the Federal Reserve to cut interest rates later this year. In a statement released by the bank, Collins said: “While I still anticipate that a gradual normalization of policy will be appropriate later this year, my outlook may change significantly as events unfold, and the impact of various government policy changes on the economy becomes more pronounced. This largely depends on whether the ‘price shock’ from tariffs can dissipate quickly.”