Fed’s Susan Collins Turns Hawkish as Inflation Cools Slowly, Leaves Door Open to Renewed Rate Hikes

Boston Federal Reserve President Susan Collins is among the U.S. central bank officials who set monetary policy, and her stance shapes market expectations for the path of interest rates. The Fed targets inflation at 2%. If price pressures persist, interest rates could remain high for longer, weighing on the valuations of risk assets such as Bitcoin and Ether.

Collins warned that U.S. inflation is cooling slowly and may not decline significantly until 2027. She said the Fed could resume raising rates if price conditions deteriorate again. The hawkish signal heightened market concerns about tighter policy, after which Bitcoin fell below $79,000 and Ether also moved lower.