Fed's Collins Hints at Keeping Interest Rates Unchanged

Odaily Fed's Collins stated that due to recent economic data showing improvement in the labor market, interest rates may remain unchanged "for a period of time," but inflation risks persist. Collins noted that the labor market is showing some unusual signs of stability. She also pointed out that more evidence is needed to indicate that the inflation rate is falling back to around 2%. Currently, interest rates are in a mildly restrictive state and may already be very close to a neutral level. Fed's Barkin also participated in the discussion, stating that he still believes there are two-way risks in the Fed's mission. He said: "No one wants inflation to stagnate, and no one wants the labor market to weaken further. We are fully prepared."