Fed Collins remarks on US economy 🏛️EURUSD gains

Susan Collins of the Federal Reserve spoke today on Bloomberg, signaling uncertainty over the Fed’s future policy decisions as both inflation risks and labor market slowdown remain significant. The euro-dollar pair is edging higher today.

• Policy is modestly restrictive, which is appropriate.

• I am not particularly worried about inflation expectations moving higher.

• Dual mandate risks are in a delicate balance.

• There is no firm decision yet on what we will do at the next meeting.

• Job growth is slowing, but there are arguments for taking more time.

• I do not rule out a larger and more persistent impact of tariffs on inflation.

• In discussions across the Boston Fed district, I hear a lot about inflation.

• I am focused on how downside risks are evolving.

• I see upside risks to inflation as well as downside risks in the labor market.

• We cannot wait for all uncertainty to be behind us.

• Overall economic fundamentals are relatively solid.

The U.S. dollar has been weakening against the euro since early morning. At around 4:00 p.m. in Jackson Hole, Fed Chair Jerome Powell is scheduled to speak.

Source: xStation5