Fed Official: Interest Rate Likely to Remain Unchanged "for Some Time," Further Rate Cuts Would Require Evidence of Inflation Falling to 2% Target

**Tuesday, February 25** Boston Federal Reserve President Susan Collins said recent economic data showing labor market improvement and persistent inflation risks mean interest rates will likely stay on hold for some time. Speaking at a Boston Fed panel discussion Tuesday, Collins noted the labor market is showing “at least somewhat unusual signs of stability” — adding more evidence is needed to confirm inflation is moving toward the Fed’s 2% target. “After cutting rates by 175 basis points cumulatively over the past year and a half, we’re now in a mildly restrictive range that may be quite close to neutral,” she said. “I think it’s likely appropriate to keep the current rate range unchanged for a period of time.” Chicago Fed President Austan Goolsbee echoed that further rate cuts aren’t justified until there’s consistent proof inflation is falling. Goolsbee said the Supreme Court’s decision to strike down several of former President Trump’s global tariffs could create more business uncertainty — but may also help curb inflation. Addressing the National Association for Business Economics (NABE) conference Tuesday, Goolsbee emphasized he wants clear evidence inflation is cooling to the 2% target before supporting additional rate cuts.