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Boston Federal Reserve President Susan Collins said Tuesday she believes the U.S. central bank will need to raise interest rates again before the end of this year to lower high inflation, Reuters reported.
Collins currently expects “it will be appropriate to raise rates a bit further before the end of the year,” according to Reuters. Her comments addressed further tightening in 2026, while another senior Fed official also described an additional increase as potentially appropriate.
New York Federal Reserve President John Williams told Bloomberg News that “it may be appropriate to have one more rate hike” in 2026, Reuters reported. Separately, Dan Ivascyn said the Federal Reserve is likely to deliver “one or two more rate increases” before the current tightening cycle ends, according to Reuters.
For Polymarket’s contract on a specified year-end Fed rate level, the market-implied chance was 8% at 9:17 p.m. UTC on Oct. 15, compared with 19% on Polymarket on Oct. 8. The Oct. 15 reading was the midpoint of the best bid and ask. The contract asks what the Federal Reserve’s policy rate will be at the end of 2026 and resolves to the Fed funds rate level then.
The Federal Reserve’s H.15 release for October 15, 2026 showed the federal funds (effective) rate at 3.88 on October 8, 9, 12, 13 and 14, 2026. That release reports the effective rate, while the contract concerns the rate level at year-end.
In a separate forecast, CNBC reported that economists at Fannie Mae are now predicting much higher mortgage rates through the end of 2026 and into 2027.
The Federal Open Market Committee is scheduled to meet on October 27-28, 2026.
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Sources: As reported by Reuters, Federal Reserve and CNBC.
Market data: Polymarket, midpoint of the best bid and ask as of 9:17 p.m. UTC on Oct. 15, 2026.
_Prediction market prices reflect the collective estimates of traders, not certainties. This is not financial or betting advice._
This article was researched and written with AI assistance and reviewed by an editor before publication.
