Ms Collins, the Federal Reserve, said on Tuesday not to get carried away by recent inflation data. "It is too early to tell whether inflation is returning to its 2 per cent target on a durable basis," she said. "We should not overreact to a month or two of upbeat news any more than we should get too many signals from disappointing data at the start of the year." She added that it was not yet time for a rate cut and more evidence was needed that price pressures were easing. Still, Ms Collins said the economy was probably on track: "I am optimistic that with a healthy labour market we can return to price stability within a reasonable time frame." Overall, Mr. Collins said, the Fed had made "significant progress" in reducing inflation.