Federal Reserve Bank of Boston President Susan Collins said another increase in the benchmark interest rate will likely be appropriate before the end of 2026, while stressing that the timing will depend on incoming economic data. The Federal Reserve raised its benchmark rate by 0.25 percentage point at its September FOMC meeting, lifting the policy rate to 3.75%-4.00%, with all 19 policymakers supporting the move. The next decision is scheduled for the October 27-28 FOMC meeting. Collins said continued economic growth, near-full employment and productivity gains could help inflation return gradually to the Federal Open Market Committee's 2% target, but warned that rising artificial-intelligence investment, tariffs and higher energy prices could add to price pressures. Policymakers will assess whether inflation remains concentrated in energy and AI infrastructure or spreads more broadly. New York Fed President John Williams also supported one more increase this year, while markets had been pricing a pause followed by a December hike.