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Most Fed Officials Open to Rate Hikes if Inflation Remains Above 2%

The latest minutes from the U.S. Federal Reserve indicate that most officials are still open to raising interest rates if inflation remains above the 2% target.
In the minutes, several members of the Federal Open Market Committee (FOMC) assessed that inflationary pressures are not yet fully under control, even though signs of economic slowdown are beginning to appear in some sectors.
Fed officials emphasized that future monetary policy will heavily depend on incoming economic data, especially inflation and labor market conditions. If inflation is seen to strengthen again or remain stagnant at high levels, further tightening options are still on the table.
This hawkish stance has attracted the attention of global market participants, as investors previously hoped the Fed would consider cutting interest rates soon. The statement has delayed expectations of rate cuts once again.
Financial markets responded with increased volatility in stocks and bonds. U.S. government bond yields also rose amid concerns that high interest rates will persist longer than expected.
The Fed’s interest rate policy remains a key factor influencing global capital flows, including movements in the crypto market and other risk assets. High interest rates typically lead investors to shift funds into safer instruments like U.S. dollar bonds.