Fed’s Collins Signals Further Rate Hike, Citing Geopolitical Energy Risks and Persistent Inflation
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- Boston Fed President Collins supports another rate hike this year.
- Cites geopolitical energy risks and persistent inflation above 2% target.
- Expects rates to remain on hold next year after potential hike.
Boston Federal Reserve President Susan Collins indicated support for another interest rate hike this year, following her backing of last week’s interest rate increase. Collins cited geopolitical developments, specifically Middle East hostilities, as a key factor potentially driving energy prices higher and hindering inflation progress. She expressed an “increased likelihood” that inflation could remain “notably above” the Fed’s 2% target, necessitating a “somewhat more restrictive policy stance.” Collins also anticipates rates remaining on hold next year after the potential additional hike. This perspective suggests that senior Fed officials view war-driven energy costs as a persistent inflationary driver, influencing future policy decisions.