WSJ: Federal Reserve internal discussions have shifted from "when to cut rates" to "when to resume raising rates"

BlockBeats News, May 3rd, according to WSJ reports, there is a clear shift in internal discussions at the Federal Reserve regarding the interest rate path.
After months of expectations for rate cuts, officials have begun discussing “under what conditions a rate hike might be necessary again.”

The report states that at the latest policy meeting, three regional Fed presidents openly opposed maintaining the policy stance of “more likely to cut rates next.” Dallas Fed President Lorie Logan said that future interest rate adjustments “could be either a hike or a cut.”

The soon-to-be-retired Fed Chair Jerome Powell also acknowledged that the Federal Reserve is gradually shifting from a “dovish” stance to a “neutral stance,” and stated that if rate hikes are needed in the future, the Fed will first shift to a neutral guidance before moving toward a rate hike bias.

The report points out that persistently high energy prices, the Strait of Hormuz crisis, and escalating Middle East tensions are re-raising the risk of U.S. inflation, also weakening market expectations for rate cuts within the year.