Federal Reserve Bank of Boston President Susan Collins emphasized that the US economy requires a period of moderation as a means to reattain the central bank's 2% inflation target.

Key Quotes

Demand will need to slow to get inflation to 2%.

Fed policy well positioned for current outlook.

Monetary policy is ‘moderately’ restrictive.

There are risks to cutting rates too soon.

Doesn’t expect productivity jump to be persistent.

Firm well positioned to absorb faster wage growth.

Recent inflation setbacks are not a surprise.

Optimistic fed can get 2% inflation in reasonable time frame.

Economy robust, job market coming into better balance.