Federal Reserve meeting minutes: More policymakers are ready to pave the way for interest rate hikes.

PANews reported on May 21 that, according to Jinshi, Federal Reserve officials' concerns about the Iran war pushing up inflation intensified last month, with a growing number of officials saying the Fed should pave the way for a possible interest rate hike. This indicates that incoming Fed Chairman Warsh will be taking over an increasingly hawkish policy-making team. Furthermore, most policymakers at the April meeting indicated that if inflation continues to remain above the 2% target, further policy tightening may be necessary. The meeting minutes showed: "In response to this possibility, many participants indicated they preferred to remove language suggesting a dovish bias in future interest rate decisions." This Fed meeting minute, considered "the most divisive in generations," further reveals the shift in the two camps welcoming Warsh: a growing hawkish camp wary of inflation triggered by the Iran war and opposed to any discussion of interest rate cuts, and a waning dovish camp still inclined towards rate cuts. The main reason driving policymakers further towards a hawkish stance remains inflationary pressure, which has been exacerbated by the war. The minutes show that the April meeting marked the second consecutive time that more policymakers believed that if inflation continued to rise above the target, interest rates should likely be raised.

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Author: PA一线

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