# Fed's Collins warns inflation risks staying high

> Boston Federal Reserve president backs rate hike but sees inflation remaining notably above target.
- Title: Fed's Collins warns inflation risks staying high · CNBC
- Summary: Boston Federal Reserve president backs rate hike but sees inflation remaining notably above target. Boston Fed President Susan Collins backed last week's…
- Keywords: susan collins, federal reserve, inflation, interest rates, fomc, philip r. lane, european central bank, business, finance, Fed's, Collins, warns
- Source: CNBC — https://cnbc.com/2026/09/23/federal-reserve-inflation-interest-rates-ecb.html
- Author: Mike Sheen
- Published: 2026-09-23T07:27:27+00:00
- Read time: 1 min
- Topics: susan collins, federal reserve, inflation, interest rates, fomc, philip r. lane, european central bank, business, finance
## Collins backs the rate hike
Boston Federal Reserve President Susan Collins supported last week's quarter-point interest rate hike, writing on LinkedIn that a more restrictive federal funds rate will help inflation return to target.
## But inflation risks are rising
Collins warned there is an increased likelihood inflation will stay notably above the Federal Reserve's two percent target. She cited increased upside risks to inflation despite stronger labor market conditions.

> Given all the available information, I now see an increased likelihood of future scenarios in which inflation remains notably above 2 percent.
## Collins' role at the Fed
Collins is president and chief executive officer of the Federal Reserve Bank of Boston. She takes part in FOMC meetings but is not currently a voting member. In two thousand twenty-five she voted at all eight FOMC meetings.
## Markets split on next move
Markets are broadly split on whether the Fed will raise rates again at the October FOMC meeting. According to CME Group's FedWatch tool, fifty-three point one percent currently expect another twenty-five basis point increase.
## ECB sees energy prices pushing inflation higher
European Central Bank executive board member Philip R. Lane said a second wave of rising energy prices is likely to keep inflation higher for longer. The ECB forecasts upward pressure on food, energy and goods in general.
## Lane warns of persistent uncertainty
Lane told Swiss newspaper Le Temps that if energy shocks prove larger and more persistent this autumn, they will hold back the eurozone economy. He said the situation will improve but uncertainty remains around the baseline forecast.

> If the shock does turn out to be larger and more persistent this autumn, that will hold back the [eurozone] economy.
## Key takeaway

Boston Fed President Susan Collins backed last week's rate hike but warned inflation could stay notably above the two percent target, citing increased upside risks.