Fed's Collins: 50 bps rate cut last month was prudent given risks in economy

Boston Federal Reserve Bank President Susan Collins said the Federal Reserve's 50 basis point cut in interest rates last month was a ‘prudent’ move as inflation falls and the economy becomes more vulnerable to shocks. ‘Against this backdrop, I think an initial 50 basis point cut was prudent, given that monetary policy remains in restrictive territory,’ Collins said Wednesday in remarks prepared for an event in Worcester, Massachusetts, adding that further adjustments may be needed.’ ’ Collins largely repeated comments she made Tuesday, including her view that policymakers should take a ‘cautious, data-dependent approach’ in lowering interest rates to help maintain the strength of the U.S. economy. She again emphasised that there is no set path for policy.