Fed's Collins (2028 voter) says she has been expecting to see continued productivity gains; it is not just AI driven; Unemployment remains relatively low

Collins' remarks highlight her expectation of sustained productivity gains as a key factor in managing inflation, suggesting a potentially more constructive outlook on the economy. This could indicate she leans towards a more hawkish stance in future Fed meetings if these productivity trends continue, possibly influencing market expectations around rate hikes and USD strength. Given her focus on supply-side issues, this could also have implications for inflation dynamics and cross-asset reactions.