Tags: susan collines | federal reserve | rate | cut

Fed's Collins Leans Against December Rate Cut

Fed's Collins Leans Against December Rate Cut
U.S. Sen. Susan Collins, R-Maine, speaks to members of the press as she is on her way for a vote on Capitol Hill in Washington, DC. (Alex Wong/Getty Images/2014 file)

Friday, 21 November 2025 09:56 AM EST

Federal Reserve Bank of Boston President Susan Collins said Friday monetary policy is in the right place amid a resilient economy, in comments that suggest she remains skeptical of the need to cut interest rates again at next month’s monetary policy meeting.

Given where inflation currently stands, "restrictive policy is very appropriate right now," and the current state of the economy "makes me hesitant as I look forward to think about what the next policy move should be," Collins said in an interview on CNBC.

She noted that maintaining something close to the current level of monetary policy will help ensure that as tariff pressures pass through the economy, still-high inflation will eventually moderate.

Collins, who currently holds a vote on the rate-setting Federal Open Market Committee, is one of a number of skeptics on the Fed when it comes to the prospect of lowering the cost of short-term borrowing at the central bank's December 9-10 meeting.

The Fed cut rates at both its mid-September and late October meetings, with the federal funds rate target range now at between 3.75% and 4%. Rate cuts were aimed at providing insurance for a softening job market, while at the same time putting continued downward pressure on inflation levels which continue to breach the Fed's 2% target.

As the December meeting looms into view, a wide range of policymakers have expressed skepticism over a December rate cut, as they have been deprived of data due to the government shutdown. That said, hopes for an interest rate cut got a shot in the arm from New York Fed leader John Williams, who spoke on Friday and nodded toward an easing.

In her interview, Collins said the September hiring data released this week was mixed and comes in a broader environment where the economy appears to be resilient. Collins said she would be watching the job market for signs of slowing and if it did, it would affect her monetary policy outlook.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
Federal Reserve Bank of Boston President Susan Collins said Friday monetary policy is in the right place amid a resilient economy, in comments that suggest she remains skeptical of the need to cut interest rates again at next month's monetary policy meeting.
susan collines, federal reserve, rate, cut
327
2025-56-21
Friday, 21 November 2025 09:56 AM
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