Federal Reserve Bank: rates will remain unchanged in the near future

The heads of the Federal Reserve Banks of Boston and Atlanta, Susan Collins and Rafael Bostic, believe that given the uncertainty in the US economy and politics, there should be no rush to lower the base interest rate. 

Collins noted the importance of a cautious approach in monetary policy, pointing out the prematurity of sudden changes. Bostic also said that it is necessary to wait for the effects of last year's Fed rate cut by 100 basis points to 4.25-4.5%.

Experts predict that the rate will remain at the current level until the end of 2025, although Collins and Bostic expect that the Fed may resume its reduction. According to Bostic, the US labor market will remain stable, and inflation will continue to decline towards the target 2%. The official also assumes that the rate will eventually reach 3-3.5%. 

Collins also stressed that Donald Trump's trade policy may cause a short-term increase in inflation, but the consequences of the duties and the Fed's retaliatory measures are still difficult to assess. In 2025, Collins has the right to vote on the Federal Open Market Committee (FOMC), while Bostic does not participate in the voting.