Federal Reserve Minutes Turn Hawkish: Rate Cut Talks Fade from View, Rate Hike Risks Reemerge

According to an analysis by the Wall Street Journal, the Federal Reserve meeting minutes indicate that Fed officials have largely moved past the question that dominated FOMC debates over the past two years—whether to cut interest rates—and have begun more seriously weighing the possibility of rate hikes. The minutes noted that "most participants emphasized... that if inflation remains stubbornly above 2%, further policy tightening may be necessary." The minutes, which came from Jerome Powell's final meeting as Fed Chair, highlight how the Middle East conflict is reshaping the outlook of the rate-setting committee. Kevin Warsh is set to be sworn in at the White House on Friday and will subsequently lead the Federal Reserve. The Fed's next policy meeting is scheduled for June 16-17. (Jin Shi)