The Federal Reserve released minutes on the 19th from the Federal Open Market Committee meeting held on the 28th and 29th of last month. FOMC participants noted that a series of supply shocks, including higher energy prices caused by worsening conditions in the Middle East, have kept inflation above the 2 percent target. Many indicated that if inflation does not come down, further rate hikes will be needed. The minutes also showed that Chair Powell proposed reducing the number of FOMC meetings per year from the current eight to six.
Minutes suggest further rate hikes if inflation stays high, implying higher policy rate.
Hawkish Fed minutes signal potential rate hikes, pushing yields up and bond prices down.
