Fed minutes from divisive meeting show officials prepping for possible rate hike as inflation fears intensify
Federal Reserve officials are increasingly concerned about inflation driven by the ongoing war in Iran, leading to discussions about a potential rate hike. The minutes from the recent meeting indicate a shift towards a more hawkish stance among policymakers. Incoming Chair Kevin Warsh will face challenges in advocating for lower interest rates as inflation pressures continue to rise.
- ▪Fed officials are preparing for a possible rate hike due to inflation concerns related to the Iran war.
- ▪A majority of policymakers indicated that some policy tightening may be necessary if inflation remains above the 2% target.
- ▪The recent meeting featured the most dissent among Fed officials since 1992, with mixed opinions on rate cuts.
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Business Fed minutes from divisive meeting show officials prepping for possible rate hike as inflation fears intensify By Reuters Published May 20, 2026, 2:56 p.m. ET See more of our coverage in your search results. Add The New York Post on Google Federal Reserve officials’ concerns about inflation being stoked by the Iran war intensified last month, with a growing number of them saying the central bank should lay the groundwork for a possible rate hike, a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers. Moreover, a majority of Fed policymakers at their April 28-29 meeting said some policy tightening may be needed were inflation to continue running persistently above the central bank’s 2% target.
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