Fed Official Cites Inflation and Conflict for Rate Hike Support

A top Federal Reserve official has explained why she supported raising interest rates last week. Susan Collins, president of the Federal Reserve Bank of Boston, said that high inflation and renewed conflict in the Middle East were key factors.

Collins agreed with the Fed's decision to lift its benchmark interest rate by a quarter-point to about 3.9% on Wednesday. She also expects rates will remain unchanged next year.

The Federal Reserve Bank of Boston is one of 12 regional banks that make up the Federal Reserve System, which sets monetary policy for the US.