FOMC Minutes: "A few" participants saw the case for raising rates
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The Minutes of Kevin Warsh's first meeting as Fed chairman are out and they have a hawkish tilt: Participants generally assessed that information received over the intermeeting period suggested that upside risks to price stability remained elevated while downside risks to achievi
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Hawkish shift opens the door to Fed rate hikes
The Federal Reserve's recent hawkish pivot raises the stakes for interest rate expectations, with a significant division among committee members on potential hikes this year. Per the full note from ING, 9 out of 18 members now anticipate at least one rate increase, compared to none back in March. This shift comes during Kevin Warsh's inaugural meeting as Fed Chair, as markets begin pricing in the possibility of higher rates. The latest consensus among traders suggests a cautious approach, particularly with energy prices stabilizing, which may mitigate aggressive rate hikes ahead.