There was an hour of clarity Tuesday when policymakers made it clear that the central banks of the U.S. and Europe are to part ways.

At the Economic Club of New York, the governor of France’s central bank told his audience that the eurozone’s key interest rate will be cut in June, “barring major shocks or surprises.”

READ MORE: Hannon’s Take: Dead Set on Divergence

Villeroy, who is also governor of the French central bank, said after the first rate cut is delivered "barring shocks or surprises" in June, the pace of further moves would be guided by the flow of economic data and decided strictly on a meeting-by-meeting basis.

"That said, we will monitor closely the geopolitical developments in the Middle East, and their possible spillovers on energy prices," Villeroy told an event at the Economic Club of New York.

READ MORE: ECB can adjust pace of cuts if Mideast tensions flare, Villeroy says

The European Central Bank will need to make further reductions to interest rates this year and next, following an initial move in June, according to Governing Council member Francois Villeroy de Galhau.

The Bank of France chief said the time has come to ease policy since there’s “no serious evidence” behind the fear that the last mile of bringing inflation back toward 2% is more difficult. He also said there are no signs of a wage-price spiral, with average compensation per employee slowing markedly.

“We should, barring major shocks or surprises, decide on a first rate cut at our next meeting on June 6,” he told the Economic Club of New York. 

READ MORE: ECB to Cut More in 2024 and 2025 After June, Villeroy Says

"Overall, the recent data have not materially changed my outlook, but they do highlight uncertainties related to timing, and the need for patience,” Collins said in a speech at the Economic Club of New York.

“It may take longer to discern whether the economy is sustainably on a path back to 2% inflation, and thus less easing of policy this year than previously thought may be warranted.”

READ MORE: 2 Fed officials offer reassurances about cuts in 2024 despite 'bumps' and 'uncertainties'

Recent labor market and inflation data highlight the need for the U.S. central bank to be patient about monetary policy, and has reduced the “urgency” to cut interest rates, Boston Federal Reserve President Susan Collins said Thursday.

“Overall, the recent data have not materially changed my outlook, but they do highlight uncertainties related to timing, and the need for patience,” Collins said, in a speech to the Economic Club of New York. 

READ MORE: Fed’s Collins: Recent data ‘reduces the urgency to ease’

“Overall, the recent data have not materially changed my outlook, but they do highlight uncertainties related to timing, and the need for patience — recognizing that disinflation may continue to be uneven,” Collins said at an Economic Club of New York event Thursday. “This also implies that less easing of policy this year than previously thought may be warranted.”

READ MORE: Fed’s Collins Says Data May Warrant Later, Fewer Cuts This Year

“I do expect it will be appropriate to begin lowering the federal funds rate later this year,” Collins said in the text of a speech prepared for delivery before a gathering of the Economic Club of New York. That said, “recent data suggest it may take more time than I had previously thought to gain greater confidence in inflation’s downward trajectory, before beginning to ease policy,” the official said.

READ MORE: Fed's Collins sees no urgency to cut rates

In a speech to the Economic Club of New York, Collins said while she was worried interest rates were becoming too high at the beginning of the year, strong jobs reports since then have shown the labor market is moving into better balance. “The Importance of a Patient, Methodical, and Holistic Approach to Monetary Policy." Furthermore, recent elevated inflation prints were not necessarily a surprise given how quickly the rate of inflation declined in the second half of 2023.
 

In remarks prepared for delivery at the Economic Club of New York on Thursday, Collins said that economic activity has remained robust, despite the Fed’s high interest rate of 5.25% to 5.50%. While the recent strength, particularly in the labor market, has been good for everyday Americans, Collins said it raises questions about the true restrictiveness of the Fed’s current policy stance and how it is affecting financial conditions.

READ MORE: Fewer Rate Cuts May Be Needed, Boston Fed President Says

"Overall, the recent data have not materially changed my outlook, but they do highlight uncertainties related to timing, and the need for patience," Collins said, in a speech to the Economic Club of New York.

"This also implies that less easing of policy this year than previously thought may be warranted," she added.

READ MORE: Fed's Collins: Recent data 'reduces the urgency to ease'

Boston Fed President Susan Collins still expects that it will be appropriate for the Federal Reserve to ease policy later this year, she said Thursday at an event sponsored by the Economic Club of New York.

READ MORE: Boston Fed's Collins sees rate cut this year, but may take longer than she thought

In remarks to the Economic Club of New York on April 11, Collins said that as inflation gradually eases, demand and supply will likely become “more closely aligned” amid a healthy labor market.

However, describing herself as a “realistic optimist,” Collins cautioned that certain risks and uncertainties remain elevated.

READ MORE: Boston Fed president thinks rate cuts may be coming by end of the year

Boston Federal Reserve President Susan Collins is due to speak on the economy before an Economic Club of New York hybrid event at 12 pm ET.

READ MORE: Futures Turn Positive Following Producer Price Inflation Data

Richmond Federal Reserve Bank president Thomas Barkin speaks to the Economic Club of New York in New York City, U.S., February 8, 2024.

READ MORE: Fed has time to mull rate cut in face of 'less encouraging' data, Barkin says

Last week, Fed Governor Christopher Waller said recent economic numbers have made him push back his expectations for when rate cuts would be warranted.

“Adding this new data to what we saw earlier in the year reinforces my view that there is no rush to cut the policy rate,” he said in a speech at the Economic Club of New York. “Indeed, it tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%.”

READ MORE: What Recent Fed Official Comments Tell Us About the Future of Interest Rates

Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, spoke on Tuesday about the equity markets, treasury bonds, and artificial intelligence before the Economic Club of New York in a moderated discussion with President and CEO of the New York Fed John C. Williams.


READ MORE: Jeremy Siegel: Bonds are terrible hedges during inflation

During a significant discussion at the Economic Club of New York dinner in December, Bill Gates, the co-founder of Microsoft, offered an insightful analysis on the current state and future of education, emphasizing the dual themes of rapid advancement in the use of artificial intelligence (AI) tools like ChatGPT in education and the concerning gaps in math education.

READ MORE: Bill Gates Highlights AI in Education and Math Gap Challenges at Economic Club NY

“I see economic output and the labor market showing continued strength, while progress in reducing inflation has slowed,” Fed Governor Christopher Waller told the Economic Club of New York on Wednesday. “Because of these signs, I see no rush in taking the step of beginning to ease monetary policy.”

READ MORE: ‘The last mile is harder’: Stubborn inflation stalls rate cuts

Recent data has shown that the U.S. Federal Reserve could hold off on cutting short-term interest rates in the face of rising productivity results, according to Chris Waller, a leading figure and Fed Reserve governor.

Waller would speak about the state of play of the U.S. financial market at the Economic Club of New York, titled “There’s still no rush.”

READ MORE: Fed’s Waller see’s no need to rush into interest rate cuts amid rising productivity

The latest U.S. inflation data points to the Federal Reserve needing to keep rates at their current levels, Fed Governor Christopher Waller said late Wednesday.

“There is no rush to cut the policy rate,” he said in a speech at the Economic Club of New York. Recent data “tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%.”


READ MORE: There’s ‘no rush’ to cut rates yet, Fed governor says