Fed meeting minutes show openness to rate hikes amid inflation risks

Federal Reserve officials signaled growing openness to raising interest rates if inflation, exacerbated by the ongoing conflict involving Iran, fails to subside, according to minutes from their April policy meeting released Wednesday. The meeting, the last chaired by outgoing Fed Chair Jerome Powell, revealed significant divisions among policymakers and a notable shift in sentiment toward tighter monetary policy.

The Federal Open Market Committee voted to keep its benchmark interest rate steady in a range of 3.50% to 3.75%. However, the meeting featured four dissenting votes, the highest number since 1992. Three of those dissents came from regional Fed presidents who objected to language in the official statement that they believed signaled a bias toward future rate cuts. These officials argued the statement should keep options open for potential rate increases instead.

A majority of participants at the meeting indicated that further policy tightening would likely become appropriate if inflation continues to run persistently above the central bank's 2% target. Many officials also expressed a preference for removing the language suggesting an easing bias from the post-meeting...