Fed Official Links Iran War to Rate Hike Decision

A top Federal Reserve official said that the recent renewal of combat in the Middle East was a key reason she supported raising borrowing costs last week, when she also penciled in a second rate hike for later this year.

Susan Collins, president of the Federal Reserve Bank of Boston, made her comments to The Associated Press.

Collins said that she agreed with the Fed's decision Wednesday to lift its benchmark interest rate by a quarter-point to about 3.9%.