Fed's Collins (2028 voter) still expect interest-rate cuts 'down the road' and expect PCE inflation to move above 3.5%, and year-end near 3%

Fed's Collins underscores a cautious but significant stance on monetary policy, indicating a prolonged period of holding rates while also expressing an expectation for inflation to surpass 3.5%. His comments point to a slight dovish tilt in the Fed's outlook, especially with a preference to signal a cutting bias. This nuanced balance suggests that while rate cuts might be anticipated down the road, the Fed remains vigilant about inflationary pressures, leaving markets to weigh the potential impacts on USD and fixed income.