A majority of U.S. monetary policymakers believe that interest rate hikes would likely become appropriate if inflation persists, the minutes of the Federal Reserve's April meeting showed.
The Federal Open Market Committee (FOMC) held the federal funds rate steady at 3.50%-3.75% for a third straight meeting. Fed Chair Jerome Powell had said the central bank was in a 'good place' to move in either direction.
U.S. economic data has shown a clear impact of spiking oil prices on consumer and producer prices. The annual headline CPI hit its highest since May 2023, while the annual headline PPI logged its biggest increase since December 2022.
Market participants have raised expectations of rate hikes. The FOMC minutes showed policymakers were also considering rate hikes.
