Boston Fed's Susan Collins Supports Rate Hike and Anticipates Another by End of Year
Susan Collins, president of the Federal Reserve Bank of Boston, supported the recent interest rate increase to approximately 3.9% and expects one more hike before year-end in 2026. She cited ongoing inflation pressures due to geopolitical tensions and cost increases reported by businesses across her district as key reasons for supporting higher rates. Collins emphasized that robust job growth indicates economic resilience, allowing the economy to absorb rate hikes without significant damage. However, she noted companies are passing on rising costs to consumers, which could prolong elevated inflation levels. Neither Collins nor Austan Goolsbee is a voting member of the Fed's policy committee this year. Goolsbee expressed more caution, suggesting that further increases may be necessary if data shows demand-driven inflation. His comments contrast with those of Fed Chairman Kevin Warsh, who believes rates can reduce inflation without harming employment.
Topics: economic policy Federal Reserve inflation interest rates