Federal Reserve Chairman Collins: The Fed still needs to raise interest rates further before the end of this year

Susan Collins, chairman of the Federal Reserve Bank of Boston, stated on Tuesday (October 14th) that the Fed may need to continue raising interest rates until the end of this year, in order to ensure that inflation returns to its target level of 2% in a timely and sustained manner. However, she also emphasized that whether and when further policy tightening will occur will largely depend on the economic data released in the future, as well as the impact of those data on her assessment of economic prospects and the balance between risks and benefits. Collins also warned that the development of artificial intelligence infrastructure could lead to overinvestment. If this leads to increased household spending and a overheated labor market, then inflation may remain above the Fed’s target for an extended period.