Federal Reserve official Susan Collins said elevated inflation risks remain the central concern for policymakers, highlighting high energy prices and rising investment in AI data centers as potential sources of inflationary pressure.
Collins expects inflation to remain above the Fed’s 2% target, while describing the US economy as resilient and the labor market as broadly balanced. She also expects continued economic growth and stability in employment.
Collins supported raising interest rates at the September meeting, signaling a cautious approach toward monetary easing. She emphasized that future monetary policy decisions will depend on incoming economic data, including inflation and employment figures.
Although higher interest rates can create challenges for households and businesses, Collins stressed that controlling inflation remains a priority.
