US Fed suggests rate hikes amid Middle East energy shocks
Business
The US Federal Reserve is hinting at raising interest rates if inflation keeps climbing, especially with ongoing energy shocks linked to Middle East tensions.
Federal Reserve Vice Chair for Supervision Michelle Bowman said these disruptions could keep inflation elevated well into the second half of the year, which might change how the Fed handles things.
Markets expect tighter Fed policy
Markets are now expecting tighter monetary policy instead of rate cuts, since inflation is still above the Fed's 2% goal.
Kansas City Fed President Jeffrey Schmid mentioned that stronger action, like adjusting the Fed's balance sheet, may be needed to fight these energy-driven price spikes.
Other Fed officials echoed their readiness to step in if inflation doesn't cool off soon.