Boston Fed President Collins sees caution on future interest rate cuts

Boston Federal Reserve President Susan Collins on Tuesday expressed support for the recent interest rate cut, but showed some skepticism on the extent of future moves as she sees continued threats from inflation.

Speaking in New York, the central bank policymaker noted risks to both higher inflation and a softening labor market that are keeping officials on their toes.

"In my view, a bit of easing was appropriate to address the recent shift in the balance of risks to our inflation and employment mandate," Collins said in prepared remarks. "But I continue to see a modestly restrictive policy stance as appropriate, as monetary policymakers work to restore price stability while limiting the risks of further labor market weakening."

The "modestly restrictive" phrasing has been used by offic