“Fed Whisperer”: Discussion on rate cuts nearly over, Fed begins seriously debating possibility of rate hikes

Odaily Planet Daily News “Fed Whisperer” Nick Timiraos stated that Fed officials have almost stopped discussing the question that dominated policy debates over the past two years—whether to cut interest rates. Instead, at last month’s meeting, they began more seriously considering the opposite direction: whether rate hikes are needed. Minutes from the April policy meeting show: “Most participants emphasized that if inflation continues to persistently stay above 2%, further tightening of policy could become appropriate.” The April meeting was the last one chaired by Powell as Fed Chair, and the minutes highlight how the Middle East conflict has reshaped the outlook of the rate-setting committee. Walsh will take over the committee after being sworn in at the White House on Friday. (Jin Shi)