Boston Fed warns rate hikes may return if inflation stays sticky and Middle East tensions worsen

She links stubborn inflation to Middle East spillover

Boston Fed President Susan Collins said the Fed may need additional rate hikes if inflation remains stubborn. She pointed to the Middle East crisis as a potential accelerant, arguing that disruptions could push prices higher and complicate the path back to targets. The comments underscore how geopolitical risks can feed directly into monetary policy decisions and inflation expectations.