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# Fed officials back September rate rise as US inflation risks persist
- URL: https://www.theglobalbanker.com/fed-officials-backed-september-rate-rise-as-us-inflation-risks-persisted/
- Published: 2026-09-24T07:23:51.000Z
- Updated: 2026-10-02T01:31:48.000Z
- Description: Regional Federal Reserve presidents backed September’s quarter-point increase, citing persistent US inflation and a solid labour market as reasons to keep monetary policy restrictive for longer.
- Author: TGB Editorial Team
- Tags: Central Banks, Americas

Federal Reserve Bank of Boston president Susan Collins said she supported the central bank’s September quarter-point rate increase because inflation remained too persistent and labour-market conditions were solid. The move lifted the federal funds target range to 3.75%–4.00%. Collins said a more restrictive stance was needed to return inflation sustainably to the Fed’s 2% target.

Collins does not vote on the Federal Open Market Committee in 2026, but participates in its discussions. The September decision was unanimous, and AP reported it was the Fed’s first increase in three years. Policymakers also indicated that another increase later in the year remained possible.

#### INFLATION RISKS SHAPE POLICY

Collins linked her support to a lack of sufficient progress on inflation and repeated supply shocks, while noting the labour market had strengthened. AP also reported that Chicago Fed president Austan Goolsbee supported the increase and cautioned that demand-driven inflation could require a more forceful response. 

Reuters separately reported that Richmond Fed president Tom Barkin saw signs the economy might be firming and said price pressure was not confined to energy or tariffs. He pointed to consumer spending and broader economic momentum, while ranking inflation above maximum-employment concerns. Barkin, like Collins and Goolsbee, is not a voter this year.

#### NEXT DECISION DEPENDS ON PERSISTENCE

The officials’ remarks reinforce the Fed’s signal that further tightening remains possible, but they do not commit the committee to a predetermined move. 

The next milestone is the Fed’s subsequent policy meeting, when officials will reassess inflation, employment and spending data against the case for another increase. Barkin said of further increases: “Will additional hikes be required, and how many? We’ll see.” Collins’s emphasis on sustainable progress leaves the timing conditional on incoming evidence.