Fed Official Cites Inflation, Middle East Conflict as Rate Hike Reasons

A top Federal Reserve official has shared her reasons for supporting last week's interest rate hike. Susan Collins, president of the Federal Reserve Bank of Boston, cited stubbornly high inflation and the renewal of combat in the Middle East as key factors.

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

The renewal of conflict in the Middle East in August was another significant factor for Collins, who noted its potential impact on inflation and economic growth.