Fed's Collins: Key to understand how uncertainty impacts economy


Fed’s Collins is speaking and is not diving deep into the economy or Fed policy:

  • Key to understand how uncertainty impacts economy.
  • Uncertainty notable in areas where long-term investment is happening.
  • Policymakers must understand uncertainty as financial stability component.
  • Must look at data holistically to measure uncertainty levels.
  • Uncertainty can even speed up some types of economic activity.

Now starting to focus more specifically on the economy/data:

  • Must be cautious and humble when looking at data.
  • July jobs data was concerning.
  • Big revisions can happen at economic turning points.
  • Uncertainty leading to wait-and-see approach to price setting

Fed’s Collins is a voting member on the 2025 Fed Board

This article was written by Greg Michalowski at investinglive.com.



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