Fed Collins sees another rate hike before end of 2026
Boston Fed President Susan Collins stated the central bank likely needs to raise interest rates again this year. She noted that a strong economy and labor market allow policymakers to focus on returning inflation to the two percent target.
Boston Federal Reserve President Susan Collins said the United States central bank will likely need to raise interest rates another quarter of a percentage point before the end of the year. The comments reinforce policymakers' intent to cool persistent inflation amid a resilient labor market. The policy path depends on incoming economic data and the balance of risks, Collins said during an address Tuesday evening.
The central bank previously lifted its benchmark rate to a range of 3.75% to 4.00% during last month's FOMC meeting. Futures markets and central bank forecasts point to a potential follow-up increase in December, steering clear of the upcoming October 27-28 gathering.
