Fed's Collins Signals Further Rate Hikes Likely as Inflation Risks Persist

3-line summary

• Boston Fed President Susan Collins said she supported the central bank's recent 25-basis-point rate hike and expects it may be appropriate to raise rates somewhat further this year, with timing and need depending on incoming data, according to Investing.com. She spoke at a Boston Fed conference for regional and community bankers.
• Collins cited August PCE inflation running at 3.4% headline and 3.0% core — both well above the Fed's 2% target for roughly five and a half years — alongside strong economic activity and a stable labor market, saying policy should stay focused on containing inflation.
• She flagged two equally weighted risk scenarios: an overheating AI investment boom straining labor and asset markets, or added cost pressure from Middle East geopolitical tensions and tariffs. The next FOMC meeting is scheduled for October 27-28.

This summary is our own processing of the source article; see the source link below for full context.