Boston Fed Pres. Susan Collins is on the wires saying:
- Recent data argue against imminent need to change rates.
- Still expects rate cuts this year.
- May take more time for economy to moderate as needed.
- Economic strength may auger fewer rate cuts.
- Disinflation likely to continue to be uneven.
- Recent inflation data haven’t changed view about outlook.
- Economy strength may mean Fed policy not as restrictive as thought.
- Strong job market reduces urgency of rate cut need.
- Expects inflation to continue to moderate.
- Fed policy well positioned for current economy.
- Economy resilient in face of Fed rate policy; may take longer to get inflation back to 2%.
Collins in a voting member. Most of the Fed members and the market for that matter, feel that cuts are still coming. The timing is unsure. The CPI data was worrying this week. The jobs report was stronger than expected. The Fed mandate is full employment and inflation. Both argue against cutting rates despite the thought that rates are too high/restrictive.
Earnings will be a focus now. PCE does not come out until Friday,April 26.