The Federal Reserve Collins: If the data supports it, it can further cut interest rates slightly this year

On September 30, Collins, the Federal Reserve, said she was open to further interest rate cuts in the expectation that price pressures will start to subside sometime next year. "A further small cut in policy rates this year may be appropriate, but that will have to be justified by the data," Collins noted. She said she supported the Fed's decision earlier this month to cut rates by 25 basis points to the 4-4.25 per cent range because it helped risk management in balancing employment and inflation targets. But she added: "I still think it is appropriate to maintain a moderate tightening stance because monetary policymakers need to minimise the risk of further labour market weakness while restoring price stability."