Fed’s Collins Says High Bar for Further Rate Cuts as Inflation Risks PersistBoston Federal Reserve President Susan Collins signalled a more cautious stance on monetary easing, saying it will likely be appropriate to keep interest rates on hold “for some time” as policymakers assess elevated inflation and an uncertain labour-market outlook.Collins, who supported last month’s quarter-point rate cut, told a bankers conference in Boston that she sees a “relatively high bar” for additional easing in the near term. Her hesitancy stems from stubborn price pressures, the inflationary effects of tariffs, and limited recent data due to the ongoing U.S. government shutdown.“Absent evidence of a notable labour-market deterioration, I would be hesitant to ease policy further,” Collins said, adding that it remains prudent to ensure inflation is “durably” on a path back to the Fed’s 2% target before cutting again.Her remarks highlight rising divisions within the Federal Open Market Committee after last month’s decision to lower the policy rate to 3.75%–4.00%. That move drew two dissents — Kansas City Fed President Jeffrey Schmid, who argued for no change, and Fed Governor Stephen Miran, who wanted a larger 50bp cut.Since then, several policymakers have voiced more caution. St. Louis Fed President Alberto Musalem has warned about the risk of policy becoming too loose, while Fed Vice Chair Philip Jefferson has urged a slower approach due to the shutdown-related “data fog.” Non-voting officials such as Atlanta Fed President Raphael Bostic have also leaned toward holding rates steady, though San Francisco’s Mary Daly has advocated remaining open-minded.Despite signs of labour-market cooling, Collins noted that downside employment risks “have not worsened since the summer,” and described current short-term borrowing costs as “mildly restrictive.” She said broader financial conditions are acting as a tailwind for growth.Collins also pointed to tariffs as a factor keeping inflation elevated into early 2026, though their impact may fade. Still, with inflation having run above target for nearly five years, she warned against moving too quickly.“Further monetary support to activity runs the risk of slowing or stalling inflation’s return to 2%,” she said. This article was written by Eamonn Sheridan at investinglive.com.