Rate hike could be appropriate if inflation were to remain above target levels, Fed minutes show

The Fed minutes for March show officials agreed to keep rates steady at the meeting but warned that Middle East hostilities could lead to sustained inflation and may require future rate hikes. That conditional hawkish language raises the odds of additional tightening and could increase volatility in interest rates, inflation-sensitive sectors, and broader risk assets.

Analysis

The Fed minutes for March show officials agreed to keep rates steady at the meeting but warned that Middle East hostilities could lead to sustained inflation and may require future rate hikes. That conditional hawkish language raises the odds of additional tightening and could increase volatility in interest rates, inflation-sensitive sectors, and broader risk assets.