Fed's Collins warns inflation could be 'notably' higher after backing rate hike

Boston Federal Reserve President Susan Collins has warned that there is "an increased likelihood" that inflation will stay "notably" above the Federal Reserve's 2% target. Explaining her reasoning for backing the Fed's quarter-point interest rate hike last week, Collins wrote in a LinkedIn post that a "somewhat more restrictive federal funds rate will help ensure that inflation durably returns to target." Collins takes part in FOMC meetings and helps shape the discussion, but is not currently a voting member. In 2025 — when it was the Boston Fed's turn to vote on the annual rotation — she voted with the majority at all eight FOMC meetings, backing a hold in July, and then quarter-point cuts in September, October and December.