Federal Reserve member expects US interest rate cut later in 2025

Boston Federal Reserve President Susan Collins revealed her expectation that the US central bank will cut interest rates later this year.

“While I continue to expect a gradual resumption of economic policy normalization later this year, my expectations could change significantly as events unfold and the economic impact of changes in various government policies becomes clearer,” Collins said in a statement issued by her bank.

“Much will depend on how quickly the price shock from tariffs dissipates,” the Boston Fed president added.

The Federal Reserve announced at its most recent meeting on June 18, 2025, that it had left interest rates unchanged at a range of 4.25-4.50%, continuing its dovish approach for the fourth consecutive time amid a complex mix of economic and geopolitical pressures.