Fed’s Collins eyes another hike as energy risks linger

On Monday, Boston Federal Reserve (Fed) President Susan Collins said the resumption of hostilities in the Middle East was a key reason for supporting the increase in the Fed funds rate last week.

In an interview with the Associated Press (AP), Collins added that she is also penciling in another rate hike this year and expects rates to remain on hold next year.

She said that “Geopolitical developments suggest that we could continue to see additional pressures push on the energy side,” while adding that she wasn’t seeing the inflation progress that she was “hoping to see.”