Fed Chair Collins: Last month's 50 basis point rate cut was a cautious move in light of risks in the economy.

According to Jinse Finance, Susan Collins, President of the Federal Reserve Bank of Boston, said that as the inflation rate drops and the economy becomes more vulnerable, the Fed’s decision to drop the Interest Rate by 50 basis points last month was a “cautious” move. “In this context, I believe that the initial 50 basis point rate cut is a cautious move, considering that monetary policy is still in a restrictive zone,” Collins said in a speech prepared for an event in Worcester, Massachusetts on Wednesday. “Further adjustments may be necessary.” Collins largely reiterated her comments from Tuesday, including her belief that decision-makers should take a “cautious, data-dependent approach” when dropping Interest Rates to help maintain the strength of the U.S. economy. She once again emphasized that policy has no predetermined path.