There is some positive news in the February personal consumption expenditure price index report, but inflation remains too high, said Boston Fed President Susan Collins on Friday. In an interview with Bloomberg Television, Collins noted that the “bit lower” data in February needed to be viewed along with highly elevated readings in the prior two months. The end result is the 3-month average for PCE inflation is about what the 12-month average is. “That is not a lot of progress,” Collins said. She added that the Fed has more work to do, and more to see, to know that inflation is really on a sustained downward path.” She said she hasn’t decide what she thinks the Fed should do at its next meeting. In a speech yesterday, Collins said her views were similar to the median forecast of Fed officials for one more rate hike this year and then no rate cuts until 2024.

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