U.S. Fed officials prepared to lay groundwork for rate hike, minutes show
Federal Reserve officials are increasingly concerned about inflation driven by the ongoing war in Iran. Many policymakers are advocating for a potential rate hike if inflation remains above the central bank's target. Incoming Chair Kevin Warsh will face a divided board as he takes over leadership amidst these inflationary pressures.
- ▪A majority of Fed policymakers indicated that some policy tightening may be necessary if inflation continues to exceed the 2 percent target.
- ▪The conflict in Iran has significantly increased energy prices, contributing to broader inflationary pressures.
- ▪The Fed's recent meeting saw the most dissent among policymakers since 1992, with differing opinions on the future direction of interest rates.
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Open this photo in gallery:Kevin Warsh, incoming chair of the U.S. Federal Reserve, on Capitol Hill in Washington on April 21.Kevin Lamarque/ReutersShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountFederal 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 per cent target.“To address this possibility, many participants…
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