Four regional Fed banks sought discount rate hike ahead of July FOMC hold
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The minutes reveal a hawkish contingent one bank larger than the public FOMC vote suggested, since Kansas City Fed President Jeff Schmid does not hold a policy vote this year and his view would not otherwise have been visible. That reinforces the picture from the FOMC minutes the
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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.