Business · Economy · 2 hrs ago
Fed’s Susan Collins says another rate increase may be needed in 2026
Susan Collins says another rate increase may be appropriate before the end of 2026.
Collins leads the Federal Reserve Bank of Boston, part of the US central bank.
She said inflation should return to the Fed’s 2% goal, but may remain above it in the coming months.
Higher prices for fuels and heating oil, along with costs linked to data center construction, could add to inflation.
Collins said strong economic growth may also push demand beyond what supply can meet, putting further pressure on prices.
She sees the labor market as stable, while warning that wider use of artificial intelligence could reduce companies’ demand for workers.
Collins said she expects inflation to ease over time, but believes a further rate rise may be needed this year to make that decline last.
Federal Reserve Bank of Boston President Susan Collins said interest rates may need to rise further before the end of 2026 to help bring inflation down.
She said a further increase would support a lasting return of inflation to the Fed’s 2% target.
Collins said she expects inflation to remain above target in the coming months, partly because of higher prices for refined energy products.
She said labor-market conditions are stable, while warning that stronger economic growth could increase demand and put upward pressure on prices.
- Who
- Susan Collins, president of the Federal Reserve Bank of Boston.
- What
- She said rates may need to rise further before the end of 2026 to help rein in inflation.
- When
- October 13, 2026.
- Where
- At the 25th Annual Conference of Regional and Community Bankers.
- Why
- To help ensure inflation returns durably to the Fed’s 2% target.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Rate outlook
- Rates may need to rise further before the end of 2026
- Inflation target
- 2%
- Speaker
- Susan Collins, president of the Federal Reserve Bank of Boston
- Conference
- 25th Annual Conference of Regional and Community Bankers
2 sources
Related
Petrobras says it has received R$16 billion in fuel price subsidies
38 mins ago · 3 sources
Argentina inflation stays below 2% for a second month
30 mins ago · 2 sources
Cyrela reports lower property launches and sales in third quarter
2 hrs ago · 2 sources
Petrobras to receive about $859 million under pre-salt agreements
1 hr ago
What people are saying
Although recent inflation data bring some promising news, other developments have been less favorable.
I expect inflation to remain above target in the coming months, considering the recent increase in prices of refined energy products, such as jet fuel and diesel, and heating oil.