Perspectives on the Economy from Susan M. Collins

Before heading to the Federal Reserve’s annual symposium at Jackson Hole, Wyoming, I have been meeting with stakeholders in the economy from across New England, the Boston Fed’s region – hearing their experiences and sharing my take on current conditions and monetary policy. And, as always, monitoring a great deal of economic data. I am pleased to share a summary of my views in this Perspectives . Overall, I see recent economic activity as expanding at a near-trend pace and labor market conditions as broadly consistent with maximum or full employment, one part of the Fed’s dual mandate. But with inflation still too high, I remain particularly concerned about the price stability portion of the dual mandate. Labor market conditions have been stable, with the unemployment rate just above 4 percent and fluctuating within a narrow range since mid-2024. Layoffs continue to be limited, and initial unemployment-insurance claims remain at the lower end of the range seen since 2022. While volatile from month to month, hiring has picked up relative to late 2025 and become somewhat more broad-based across industries. Of course, the aggregate data mask significant variation across place, occupa