Fed’s Susan Collins Says Rates May Need to Rise Further This Year
Boston Fed President Susan Collins said a further rate increase before year-end may be appropriate, depending on incoming data. She cited AI-related demand and high energy prices as inflation risks.
Susan Collins, president of the Boston Federal Reserve, said on Tuesday that the central bank may need to raise interest rates again before year-end as inflation remains above target. Collins Flags Inflationary Risks Speaking at the 25th Annual Regional and Community Bankers Conference, Collins said it would be "appropriate" to raise rates "a bit further" before year-end to return inflation to the Fed's 2% target. "However, my view will depend on how the totality of incoming data shapes my outlook and the associated balance of risks," the economist added. 00%.
Collins said her "modal outlook" is healthy GDP growth and a labor market near full employment, though she flagged inflation risks from stronger-than-expected AI-related demand and high energy prices. Read Also: JPMorgan Earnings Prediction Market Preview: What Will Jamie Dimon Say? What Do Punters Think? The odds of Kevin Warsh -led Fed enacting one more rate hike before year-end stood at 80% on Polygon (CRYPTO: POL) -based Polymarket.
Source: Polymarket Similarly, bettors on Kalshi priced in a 75% chance that the central bank would hike rates by 25 basis points in December, up from 58% a month ago. Notably, CME FedWatch data showed only a 21% probability that rates would be hiked at the October meeting, while the odds for December were higher at 71%. Read Also: Stock Market: Will S&P 500 Open Up or Down Today? Kalshi and have an existing data collaboration agreement.
com