Federal Reserve reconsiders rate cuts and may raise rates
The US Federal Reserve is rethinking its plan to cut interest rates and may actually raise them instead.
This comes after several Fed officials, including Dallas Fed President Lorie Logan, said any changes will depend on how the economy holds up.
Outgoing chair Jerome Powell also mentioned the committee is moving toward a more neutral stance and could update its usual policy wording.
Energy price surge risks Fed hikes
Ongoing trouble in the Middle East, like the Strait of Hormuz being closed, has pushed energy prices higher, making inflation harder to control.
Minneapolis Fed President Neel Kashkari said rate hikes might be needed if these disruptions stick around.
Plus, with Kevin Warsh set to become the new Fed chair after Senate confirmation, all eyes are on their next meeting roughly a month after Powell's term ends on May 15, 2026 (i.e., mid-June 2026), where big decisions about future rates are expected.