Fed's Collins: Fed still needs to raise rates further by the end of this year.

October 14 — Boston Fed President Susan Collins said on Tuesday that she currently believes the Fed may need to raise interest rates further before the end of this year to ensure inflation returns to its 2% target in a timely and sustained manner.

However, she stressed that whether to tighten policy further and the timing of any action will depend largely on upcoming economic data and how those data change her assessment of the economic outlook and the balance of risks. Collins warned that AI infrastructure buildout could lead to an investment boom of excessive scale. If related demand further stimulates household spending and overheats the labor market, inflation could remain above the Fed's target for a prolonged period.