Fed’s Collins Drops a Bombshell: Why Aggressive Rate Cuts Could Ignite the Next Market Surge!

Fed’s Collins Drops a Bombshell: Why Aggressive Rate Cuts Could Ignite the Next Market Surge!

Ever wondered if the Federal Reserve plays chess or checkers with the economy? Boston Fed President Susan Collins left us buzzing this week with her latest take at the Greater Boston Chamber of Commerce — no script-following here. Instead, we’re looking at a delicate dance: rates could hold steady or shift just enough to keep things “restrictive” despite easing. It’s a fascinating puzzle, especially when you consider the twists on inflation, job market jitters, and the sticky remnants of tariffs still ripple through prices. With the Fed pondering a modest rate tweak in 2025 and consumer sentiment throwing curveballs, it’s anyone’s guess how the economic chessboard will settle. Ready to dive into the nuances that could redefine your financial outlook? LEARN MORE

Federal Reserve Bank of Boston President Susan Collins spoke on Tuesday about the state of the economy and the Federal Reserve Bank at the Greater Boston Chamber of Commerce. She claimed that the policy is not on a preset path; there are scenarios that would keep rates steady, and that policy would remain restrictive even with more easing.

Key Comments

Policy not on pre-set path, there are scenarios that would keep rates steady.

Expects more growth, small rise in unemployment, inflation elevated.

Favorable financial conditions will support households.

Downside risks to job market have risen.

Inflation should begin to ease as tariff impact wanes.

Inflation risks have become more contained, but tariffs will still push up prices.

Policy would remain restrictive even with more easing.

We expect relatively modest further rise in unemployment.

As uncertainty fades, would expect hiring to increase.

It is prudent to normalize rates a bit further in 2025

The downside risks to the labor market have likely risen.

Breakeven job growth rate could be around 40k a month.

Inflation continues to be top of the mind.

I have long expected tariffs would take some time to work through the economy.

I expect hiring will improve over the longer horizon.

Consumer sentiment measures aren’t particularly strong and sentiment hasn’t been the best predictor of consumption.

The job market risks suggest more easing is needed.

Perhaps another 25 bps of easing might be appropriate.”

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.26% 0.15% -0.29% 0.08% 0.51% 0.27% -0.31%
EUR 0.26% 0.42% -0.02% 0.33% 0.82% 0.54% -0.04%
GBP -0.15% -0.42% -0.42% -0.07% 0.39% 0.16% -0.46%
JPY 0.29% 0.02% 0.42% 0.37% 0.78% 0.53% -0.07%
CAD -0.08% -0.33% 0.07% -0.37% 0.47% 0.19% -0.39%
AUD -0.51% -0.82% -0.39% -0.78% -0.47% -0.27% -0.85%
NZD -0.27% -0.54% -0.16% -0.53% -0.19% 0.27% -0.58%
CHF 0.31% 0.04% 0.46% 0.07% 0.39% 0.85% 0.58%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

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