[Federal Reserve's Collins: Another Rate Hike May Be Needed This Year] Odaily Planet Daily News - Boston Federal Reserve President Collins stated that interest rates may need to be raised further by the end of this year to curb inflation. Regarding the necessity and timing of further rate hikes, she said it would depend on future economic data releases. Collins expects the U.S. economy to continue growing and the labor market to remain near full employment. She stated: 'Under this scenario, as sustained efficiency improvements support the balance between demand and supply and drive inflation cooling, inflation will gradually fall back to 2%.' However, she warned that the likelihood of two other scenarios occurring is almost equally high. The demand for AI could drive an investment boom larger than expected, further boosting household spending, overheating the labor market, and keeping inflation persistently above the Federal Reserve's target. Additionally, price pressures from tariffs and energy costs, especially in the context of the ongoing Iran war, could prolong inflation challenges. Collins stated: 'It is important to observe whether high inflation remains primarily confined to areas related to energy and AI infrastructure construction, while price growth in other sectors continues to slow; or whether signs of price pressure spreading are emerging.' (Jin10)