The President of the Boston Federal Reserve stated that the economic environment is full of uncertainty and is open to further interest rate cuts this year

According to the Zhitong Finance APP, Boston Federal Reserve President Collins stated on Tuesday that she is open to further interest rate cuts this year against the backdrop of expected easing of inflationary pressures starting next year.

In a speech at the Council on Foreign Relations in New York, Collins noted, "It may be appropriate to moderately lower the policy interest rate further this year, provided that the data supports such a decision." She reiterated her support for the Federal Reserve's 25 basis point rate cut earlier this month, believing that maintaining a "moderately tight" policy while restoring price stability helps balance the risks in the labor market.

Recent Federal Reserve meetings have shown that policymakers expect more rate cuts may occur within the year and anticipate further easing in 2026. Although the Trump administration's large-scale tariff measures continue to push prices higher, some officials have indicated that inflationary pressures are below expectations.

Collins also acknowledged that the economic environment is filled with uncertainties, with the possibility of persistent inflation or a deteriorating labor market, but she emphasized that the previously most concerning "upside inflation risks" have diminished.

In terms of macro data, the latest figures from the U.S. Department of Labor show that job vacancies in August remained essentially flat at 7.23 million, slightly up from the revised 7.21 million in July. Since peaking in early 2022, job vacancies have significantly declined and have remained in a relatively stable range over the past year.

This trend indicates a balance in labor demand but is also accompanied by signs of reduced hiring by employers and longer times for unemployed individuals to find new jobs. Federal Reserve Chairman Powell warned of signs of weakness in the labor market during the September rate cut, and while some officials remain vigilant, there are still concerns that high inflation levels limit the space for further policy easing.

Meanwhile, U.S. consumer confidence data is also not optimistic. The Conference Board Consumer Confidence Index fell by 3.6 points to 94.2 in September, marking a five-month low and below market expectations. The present situation index dropped to a one-year low, and future expectations indicators also weakened simultaneously.

Analysts point out that consumer sentiment has fluctuated due to multiple factors, including slowing hiring, persistent inflation, and record-high stock markets. Nevertheless, consumer spending remains resilient, driving continued economic growth, but declining confidence has cast a shadow over future trends