{
  "id": 9006051,
  "title": "Fed’s Collins eyes another hike as energy risks linger",
  "url": "https://urgent.news/2026/09/21/feds-collins-eyes-another-hike-as-energy-risks-linger",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-21T20:44:17.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/feds-collins-eyes-another-hike-as-energy-risks-linger-202609212044"
  },
  "original_language": "en",
  "account": "Federal Reserve President Susan Collins indicated on Monday that a potential increase in interest rates is on the agenda for this year, following the resumption of conflict in the Middle East. The Fed president expressed concerns over the impact of geopolitical developments on energy markets, stating that further pressures could continue to push on the energy side. Collins also mentioned that she was not observing the level of inflation improvement she had anticipated. The US Dollar (USD) has been performing strongly against major currencies, including the Canadian Dollar, as highlighted in the provided data table. The Federal Reserve's primary goal is to maintain price stability and foster full employment, with interest rates being their primary tool to achieve these objectives. When inflation exceeds the Fed's 2% target, they raise interest rates, thereby strengthening the USD by making the US an attractive destination for international investments. Conversely, when inflation falls below 2% or unemployment rates are too high, the Fed may lower interest rates to stimulate borrowing and weaken the USD. The Federal Open Market Committee (FOMC) convenes eight times a year to discuss and decide on monetary policy matters. In extreme situations, the Fed may resort to Quantitative Easing (QE), a non-standard policy measure that involves the Fed buying high-grade bonds from financial institutions to increase the flow of credit in a stagnant financial system. Historically, QE has been used during crises like the Great Financial Crisis of 2008 and usually results in a weaker US Dollar. However, Quantitative Tightening (QT) is the opposite process, where the Fed stops buying bonds and does not reinvest the principal from maturing bonds, typically boosting the value of the US Dollar. Recent events, such as the ongoing tensions between Russia and Ukraine and in the Middle East, have contributed to market volatility and a weaker US Dollar.",
  "summary": "On Monday, Boston Federal Reserve (Fed) President Susan Collins said the resumption of hostilities in the Middle East was a key reason for supporting the increase in the Fed funds rate last week.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}