US FOMC Member Collins Speaks

Good morning, and a warm welcome to all of you. It is a pleasure to welcome members of the Boston Economic Club to the Boston Fed today. We appreciate our relationship with the Economic Club, and its role in the vibrant economic and financial “ecosystem” of Greater Boston. 1 I’m looking forward to sharing some thoughts on economic conditions. But first, as always, my standard disclaimer. These comments reflect my own views, not necessarily those of my colleagues at the Board of Governors in Washington, D.C., or at the other Federal Reserve Banks. I’ll preface my remarks about the economy with a few opening observations. It has become a welcome tradition for the Club to invite Federal Reserve Bank staff to attend when Boston Fed presidents speak. And today, in addition to Club members, the audience includes many Bank employees. So, in the context of all the recent discussion about the Fed’s roles, independence from political pressures, and opportunities to be more effective and efficient, I’d like to say a few words about our people. At his final press conference, outgoing Fed Chair Jay Powell said that “This institution is resilient, capable, and staffed by professionals of extraordinary talent and exceptional dedication.” Earlier this year, he also said “I will tell [the next Chair that] you're about to meet the most qualified group of people you not only have ever worked with, [but] you will ever work with … There isn't a better cadre of professionals more dedicated to the public wellbeing than those who work at the Fed.” Having been at the Boston Fed for almost four years, and seeing it in action, I wholeheartedly agree with his sentiments. Many people do not reali FED'S COLLINS SAYS SHE COULD ENVISION THE NEED FOR RATE HIKES COLLINS BELIEVES THE FED WILL HAVE TO MAINTAIN STRICT POLICIES FOR A WHILE LONGER. FED'S COLLINS WANTS MORE RATE CUTS LATER THIS YEAR IF ECONOMY PERMITS. COLLINS STRESSES THE FED MUST TAKE NECESSARY ACTIONS TO LOWER INFLATION TO 2%.

Good afternoon. It is wonderful to be with you today, and an honor to be on the program with Governor Healey, Secretary Paley, Congressman Neal, and Mayor Sarno. It is really a pleasure to be with all of you attending this event, who are building the present and future economy in western Massachusetts. I’d also like to thank Diana Szynal and Dominick Ianno for the invitation to be here. Today I’d like to share, for context, a bit about the Federal Reserve; then discuss the economy, my outlook, and my views about appropriate monetary policy – and end with some perspectives regarding small businesses. I’ll share some numbers, because objective rigor is always important, and will also relate some of the qualitative themes I hear when meeting with people across New England.1 But first, as always, I’ll give my standard disclaimer. These comments reflect my own views, not necessarily those of my colleagues at the Board of Governors in Washington, D.C., or at the other Reserve Banks. In my job, it’s vital to complement good data with outreach to people on the front lines of the economy, in all kinds of places: rural, urban, and suburban; thriving and struggling. So, I spend time hearing about economic challenges and opportunities, as well as experiences with costs and prices, and the job market – reflecting the Fed’s Congressionally mandated goals, price stability and maximum employment. Eight times a year, I gather with other Fed officials as part of the Federal Open Market Committee, or FOMC, to deliberate on interest rate FED’S COLLINS: SEES NO URGENT NEED TO CHANGE MONETARY POLICY STANCE FED’S COLLINS: EXPECTS FED RATE TARGET TO HOLD STEADY ‘FOR SOME TIME’ Just in | Fed's Collins anticipates a gradual decline in inflation toward the 2% target.

FED'S COLLINS: RECENT JOB DATA HAS BEEN PROMISING - MAY BE MORE STABILITY IN JOB MARKET AMID FRAGILITY - JOB MARKET SOFTENED LAST YEAR BUT WASN'T SOFT ... FED'S COLLINS: LOWER JOB GROWTH MAY REFLECT PRODUCTIVITY, UNCERTAINTY ... BOS FED'S COLLINS W/RICHMOND FED'S BARKIN/TRVH CONF: CORE INFLATION BASICALLY WHERE IT WAS A YEAR AGO; TARIFFS A NEW ELEMENT; NEED MORE CONFIDENCE #Collins #FederalReserve #economy Just in | Fed's Collins indicates that current monetary policy is mildly restrictive and approaching neutrality. FED CHAIR COLLINS STATES THAT MANDATES HELP KEEP THE FED FOCUSED ON ITS GOALS DESPITE OTHER CHALLENGES AROUND

Federal Reserve Bank of Boston President & CEO Susan M. Collins delivered brief, opening remarks and introduced the keynote speaker, Michelle W. Bowman, Vice Chair for Supervision at the Federal Reserve Board, at Outlook 26: The New England Economic Forum. The event, hosted by the six New England Bankers Associations, is a forum for bankers and business leaders that focuses on sharing economic perspectives and insights.

It is a pleasure to join you today for the Boston Fed’s 24th annual Regional and Community Bankers Conference. I want to thank all of you for attending, and for the constructive engagement that you have with the Federal Reserve. The “North Star” for us at the Boston Fed is a vibrant economy that works for everyone. That requires a resilient financial and banking system. The Federal Reserve supports that in a number of ways – and constructive engagement, with banks and many other stakeholders, is a key ingredient. I believe it is essential for us at the Federal Reserve to listen well to the stakeholders in all of our work, and to explain well our policy decisions. So, I’ll share my perspectives on the economy and monetary policy. I’ll then shift to describing some of the trends in community banking that we at the Fed are following. And I’ll comment briefly on innovation in finance and payments. First let me note, as always, that these remarks today are my own views; I am not speaking for any of my colleagues at the other Federal Reserve Banks or the Board of Governors. *COLLINS: ADDITIONAL SUPPORT RISKS STALLING INFLATION PROGRESS *COLLINS: SEE RELATIVELY HIGH BAR FOR FURTHER EASING NEAR TERM *FED'S COLLINS FAVORS HOLDING RATES STEADY 'FOR SOME TIME' - Fed's Collins warns that additional monetary support may hinder inflation's return to 2% - Current Fed policy is mildly restrictive; financial conditions support growth - Anticipates modest unemployment rise, with tariffs keeping inflation high into early 2026 - No…