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

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

• Fed's Collins not speaking on the economy or Fed policy

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