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Fed's Collins Says Rate Hike Will Help Return Inflation to Goal
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Federal Reserve Bank of Boston President Susan Collins expressed support for the Federal Reserve's recent decision to raise interest rates by a quarter percentage point, stating that a more restrictive federal funds rate will help ensure inflation returns durably to the central bank's 2% target. In a LinkedIn post on Tuesday, Collins noted that with the labor market on better footing, monetary policy can focus on a timely return to price stability after five and a half years of elevated inflation. She also saw an increased likelihood of scenarios where inflation remains notably above 2%. The Fed's decision was unanimous, and updated projections indicate one more quarter-point hike this year, with eight officials forecasting another increase in 2027. Chairman Kevin Warsh, who abstained from submitting rate projections, characterized the move as removing a dose of accommodation from the economy.
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Maria Eloisa Capurro Tue, September 22, 2026 at 7:10 AM PDT | 1 min read
(Bloomberg) — Federal Reserve Bank of Boston President Susan Collins said she supported last week's decision to raise interest rates, which she said would help bring inflation back to the central bank's 2% target.
"A somewhat more restrictive federal funds rate will help ensure that inflation durably returns to target," Collins wrote in a LinkedIn post on Tuesday. "With the labor market on a better footing, monetary policy can focus on a timely return to price stability, especially after five and a half years of too high inflation."
Collins, who does not vote on monetary policy this year, said she saw an "increased likelihood" of scenarios in which inflation remains "notably above 2%."
Fed officials voted unanimously last week to raise their benchmark interest rate by a quarter percentage point. In their updated economic projections, policymakers penciled in one more quarter-point hike this year, according to the median forecast. Eight officials forecast yet another increase in 2027.
Chairman Kevin Warsh, who again abstained from submitting rate projections, said last week's decision removes a "dose of accommodation" from the economy.
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