Fed minutes show more policymakers were prepared to lay groundwork for rate hike

Federal Reserve officials are increasingly concerned about inflation risks, particularly due to the ongoing Iran war, leading to discussions about potential rate hikes. The April meeting revealed a split among policymakers, with four dissenting opinions, the most since 1992. Many officials believe policy tightening may be necessary if inflation remains above the 2% target. Expectations for rate cuts have shifted, with fewer economists predicting reductions this year, as bond markets reflect a growing belief in imminent interest rate increases.