Fed Officials See Rate Hike Ahead if Inflation Stays Elevated, Minutes Show
Officials said 4 no votes showed deeper divisions as the central bank weighed whether persistent inflation would require tighter policy.
- On Wednesday, Federal Reserve minutes revealed a majority of officials concluded interest-rate increases would be necessary if inflation remains above the 2% target, following the committee's April 29 meeting where rates were held between 3.5%-3.75%.
- Officials broadly agreed that the Iran war has "significant implications" for the Federal Reserve, as soaring energy prices pushed most inflation measures above 3%, complicating the path back to the 2% target.
- The meeting featured four "no" votes—the most since 1992—as three regional presidents advocated keeping options open for increases, while many participants preferred removing language suggesting an easing bias toward future cuts.
- Traders in derivative markets put a 60% chance of a rate hike by December, while market pricing points to a higher probability of a hike by late 2026 or early 2027.
- Incoming Fed Chair Kevin Warsh is set to be sworn in on Friday, while Jerome Powell will remain on the Board of Governors despite President Donald Trump's explicit expectation that the Fed should cut rates.
46 Articles
46 Articles
Fed Minutes Show More Officials Warned of Rate-Hike
Bloomberg: “A majority of Federal Reserve officials warned the central bank would likely need to consider raising interest rates if inflation continued to run persistently above their 2% target.” “In response to the same worries, ‘many’ officials during last month’s policy meeting called for the Fed to drop its easing bias and signal its next move could be an interest-rate increase, according to a record of the gathering.”
Tulsa World
Fed minutes hint at higher interest rates
WASHINGTON — Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month, with a growing number open to the possibility that they may need to raise interest rates, in a sign that incoming Chair Kevin…
Remarks raising the possibility of a benchmark interest rate hike were found in the Federal Open Market Committee (FOMC) minutes released by the U.S. Federal Reserve. Amid rising prices, driven primarily by oil prices, as the Middle East crisis drags on, a majority of Fed members indicated that interest rates may need to be raised if inflationary pressures persist.
High energy prices risk keeping inflation above 2% target, concerning Fed policymakers
Federal Reserve policymakers were concerned about high energy prices contributing to inflationary pressures in the economy when they held interest rates steady last month, the minutes from the meeting show.The Federal Open Market Committee (FOMC), the Fed panel responsible for monetary policy decisions, released the minutes of policymakers' April meeting on Wednesday which showed inflation driven by energy prices and tariffs when they kept the b…
Fed officials see possible interest rate hikes if Iran war keeps inflation high, minutes show
Fed minutes released Wednesday show officials divided over inflation risks from the Iran war, with most open to possible rate hikes if price pressures persist. While rates were held steady, dissent rose to a 1992 high. Inflation remains above target
UPDATE 2-Fed minutes show more policymakers open to a rate hike
Moreover policymakers "generally judged" they would need to keep the policy rate steady for longer than previously anticipated, the minutes said, with a "vast majority" noting an increased risk that inflation would take longer to return to their 2% goal even as they "generally expected" stable labor market conditions in the near term. Indeed, while several policymakers did feel a rate cut would be appropriate once inflation eases, that was fewe…
Coverage Details
Bias Distribution
- 62% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
