Fed Officials Still See Possible Rate Cuts This Year Despite Recent Hot Inflation

Two Fed officials offered reassurances that interest rate cuts are still possible this year despite higher recent inflation readings.

New York Fed's John Williams said rate cuts "starting this year" still make sense if economy proceeds as expected.

Boston Fed's Susan Collins said she still expects to cut rates this year but may need more time to ensure inflation is falling.

Collins said fewer cuts in 2024 may be warranted if it takes longer for inflation to fall back to 2% target.

Both officials said recent hotter inflation readings were not entirely surprising given lower readings late last year.