Tighten expectations + geopolitical risks, Risk-off mode activated

The Federal Reserve meeting minutes state that rising fuel prices are keeping inflation high; if inflation remains above 2% for an extended period, further tightening may be necessary. Most participants lean towards removing the dovish hint of rate cuts after the meeting. The Middle East conflict has driven up energy prices, which is the main reason for recent inflation increases; rising fuel prices have also affected transportation and airline tickets, while supply chain disruptions have increased the prices of fertilizers and some non-energy goods. Most officials believe it will take longer to return to the 2% target; if the conflict persists, sustained high oil and commodity prices could entrench broader price pressures.