Fed Minutes: More Officials Mention Rate Hike Possibility, Policymakers Eye Iran War Dual Risk

BlockBeats News, April 9th, the minutes of the Fed's March meeting showed that at the March meeting, the number of officials hoping to signal a possible rate hike next rather than further rate cuts to the market increased.

The minutes showed: "Some participants noted that there were good reasons to provide a two-sided description of the Committee's future rate decisions in the post-meeting statement." In contrast, the January minutes only mentioned "a few" participants holding this view. In the Fed's parlance, "some" refers to a greater number of people than "a few."

Fed officials weighed different scenarios facing the U.S. economy after the outbreak of the Iran war, including scenarios requiring rate cuts and scenarios that might necessitate rate hikes. The minutes of the March FOMC meeting released on Wednesday showed that most officials were concerned that the war could impact the labor market, thus requiring a rate cut. At the same time, many officials also emphasized the risk of inflation, which could eventually necessitate a rate hike. The minutes showed that an increasing number of officials were suggesting adding relevant language in the post-meeting statement, mentioning the possibility of a rate hike under specific conditions.