Federal Reserve officials signaled increasing concern that persistent inflation could require higher interest rates, according to minutes from the April 28-29 FOMC meeting. A majority said further policy tightening may become necessary if inflation remains above the Fed’s 2% target, while many favored removing language implying an easing bias. Policymakers cited inflation risks tied to the Iran war, elevated bond yields and stronger-than-expected economic data. The Fed kept rates unchanged at 3.

Federal Reserve officials signaled increasing concern that persistent inflation could require higher interest rates, according to minutes from the April 28-29 FOMC meeting. A majority said further policy tightening may become necessary if inflation remains above the Fed’s 2% target, while many favored removing language implying an easing bias. Policymakers cited inflation risks tied to the Iran war, elevated bond yields and stronger-than-expected economic data. The Fed kept rates unchanged at 3.5%-3.75%, though three officials dissented over guidance suggesting future rate cuts. Markets are now pricing in possible tightening by year-end.