U.S. Federal Reserve member Collins: Inflation may exceed expectations in 2025.

Susan Collins, a member of the Federal Reserve Bank of Boston, emphasized a cautious approach regarding the course of monetary policy.

On the sidelines of a conference held today, Thursday, the Federal Reserve member noted during her remarks that the current projections of the Federal Reserve align with the forecasts made in December, calling for addressing changes, particularly those related to the inflation rate.

She stated that while the labor market shows resilience, inflation remains more persistent than expected, despite approaching the Federal Reserve's target of 2%, and anticipates that inflation will exceed previous forecasts in 2025, with risks shifting to the upside.

She mentioned that the Federal Reserve's policy is well-positioned to adapt, either by keeping interest rates stable or easing them earlier if circumstances require it.

However, the Federal Reserve member reported that it is too early to know how future policy changes from the new administration and Congress could affect inflation trends and economic activity.