On Thursday, Collins, the Federal Reserve, said she believes the Fed has the ability to lower inflation without triggering a recession, and hinted at support for a rate cut starting next month. "I think there is a clear path to achieving our goals that will not lead to an unnecessary recession and will allow the job market to continue to be healthy," Collins said. "Maintaining a healthy labor market while we continue to reduce inflation is important, and that's one of the reasons I think the time is right to start easing monetary policy." While she would not comment on the possibility of the Fed starting the easing cycle with a 50 basis point cut instead of the usual 25 basis points, Ms Collins stressed the health of the labour market and called for a "gradual and methodical" policy shift, suggesting she favoured a smaller cut. One of the risks to the outlook, she said, was the possibility of a "self-fulfilling" spiral into weakness if the view that the US jobs market was cooling too quickly took hold.