Should inflation persist in its downward trend, the Federal Reserve may be inclined to "soon" start cutting interest rates, Boston Fed President Susan Collins said on Friday.

"If the data continue the way that I expect, I do believe that it will be appropriate soon to begin adjusting policy and easing how restrictive the policy is," Collins said in an interview with the Providence Journal. "My outlook is for continued gradual reduction back to our 2% target amid a healthy labor market."

Collins said that she expects rates to decrease over the next few years but chose not to specify the timing of rate of the easing. "We'll have more data before our September meeting, and I don't want to get out ahead of that."

The central bank's policy-setting Federal Open Market Committee will gather on Sept. 17-18 in Washington.

While the July jobs report revealed a sharp slowdown in hiring an increase in the unemployment rate, Collins emphasized that the labor market remains strong. "The economy is growing at a pace that I think should preserve that solid labor market," she said.