BlockBeats report: On May 25, Eamonn Sheridan, an analyst at the U.S. financial website InvestingLive, noted that the Federal Reserve’s April meeting minutes revealed a clear shift in its stance. The previous language emphasizing a “flexible and rapid” response based on economic data has been replaced with new wording: persistently high inflation, combined with uncertainty regarding the economic impact of the ongoing conflict in Iran, may mean that policy needs to remain on hold longer than previously anticipated.
Chairman Walsh faces an inflation landscape that is not merely an energy issue. Officials note that elevated fuel costs are gradually being passed on to shipping rates, airfare, and fertilizer prices, spreading inflationary pressures across a broader range of sectors. This传导 effect makes it harder to view inflation as temporary and provides hawkish officials with more sustained grounds for advocating maintaining high interest rates or even further hikes.
The market currently expects that if inflation fails to decline, the Fed may raise rates again by the end of 2026 or early 2027. Wessel himself favors rate cuts, but this stance could create potential friction with a committee that is increasingly leaning toward a hawkish position; as Wessel’s leadership style becomes more apparent, this dynamic may intensify volatility in FOMC communications.