FOMC minutes reveal majority favor tightening if inflation stays above 2 percent, complicating Trump’s push for rate cuts.
Federal Reserve minutes from the April 28-29 FOMC meeting show most participants support rate hikes if inflation remains persistently above the 2 percent target. The summary highlights a shift away from the committee’s prior easing bias, with many members preferring to remove language signaling potential cuts.
Inflation data released last week showed the Consumer Price Index rose 3.8 percent year over year in April, well above the Fed’s target. The minutes suggest the committee is increasingly inclined toward policy firming, or rate hikes, as inflation pressures persist.
Kevin Warsh, set to be sworn in as Fed Chair tomorrow, may face pressure from President Trump to ease monetary policy. However, the minutes indicate Warsh will likely need to defy Trump’s expectations to address inflation concerns.