Fed's Collins Cautions About Rate Hike Cycle, Market Pricing Suggests Fed Unlikely to Hike

Federal Reserve Bank of Boston President Susan Collins expressed caution about concluding the rate hike cycle, stating that more interest rate hikes are still possible to bring down inflation. Despite recent encouraging signs, she emphasized the need for patience and resolute policymaking to achieve a soft landing for inflation. Market pricing suggests the Fed is unlikely to hike in the near future, with a projected 525%-5.5% target rate and a full percentage cut expected by the end of 2024.