Fed officials see possible interest rate hikes if Iran war keeps inflation high, minutes show

Key points

• Minutes released Wednesday show that most Federal Reserve officials at their latest meeting believed further interest rate hikes may be required if the ongoing Iran war keeps pushing inflation higher.
• CNBC reported that although the Federal Open Market Committee (FOMC) again voted to maintain its benchmark interest rate in the 3.5 per cent to 3.75 per cent range, the meeting saw four dissenting votes, the highest since 1992, reflecting growing disagreement over the future direction of monetary policy.
• Fed officials divided on the impact of the Iran war on inflation During the meeting, officials debated how the Iran war might impact inflation and how that would influence interest rate policy.
• Officials remained divided on how long the price impact would last, and whether the post-meeting statement should still signal a bias toward rate cuts as the likely next move.
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