Fed officials see rate hike ahead if inflation stays elevated, minutes show | Crypto Craft

  • Fed officials see rate hike ahead if inflation stays elevated, minutes show

    From cnbc.com

    A majority of Federal Reserve officials at their most recent meeting anticipated that interest rate increases would be necessary if the Iran war continued to aggravate inflation, according to minutes released Wednesday. Though the rate-setting Federal Open Market Committee again voted to keep its benchmark rate targeted between 3.5%-3.75%, the meeting featured four “no” votes, the most since 1992, and an apparently heightened level of disagreement about where policy should go. At issue was the impact that the Iran war would have on prices and how that would work its way into monetary policy. Officials differed on ... (full story)

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marytee
May 20, 2026 3:02pm
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Ya hear that, Trump??!!
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Trader#46F8
May 20, 2026 3:00pm
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June will likely be a hold. While we might get some comments from Warsh about potential rate hikes, they're not coming. It is also likely that the Fed will cut by 50bps in September, or at least they'll cut, to prop up the stock market into stratosphere before the midterm elections. This is actually what is probably going to happen.

Fed should have called for an emergency meeting already to hike rates before June, but that's not gonna happen.

Gold and silver are both expected to rip the face of the USD moving forward. This temporary pressure on precious metals is over soon, as soon as the markets wake up to the fact that the Fed won't do shit and are only looking for excuses to keep cutting/inflating.

If the Fed refuses to hike rates soon, they will have to go with QE and buy the US debt across the board because the debt will get sold across the board due to the Fed giving up on inflation (not taking it seriously) and investors will demand higher and higher yield to compensate for inflation.

This is where QE comes into the game. The Fed will have to buy the debt across the board to keep the yields suppressed. The Fed cannot allow the yields to keep surging because US will literally collapse under high rates. However, this will come at a great cost. This will really destroy what is left of the purchasing power of the USD.

The Fed needs to start hiking rates immediately to save the USD. Not 25bps, not even 50bps per meeting. If the Fed would start hiking rates aggressively, debt investors would start buying the US debt for a very simple reason. First is that the Fed is finally taking inflation seriously and the second is that the Fed has decided to push the US economy into recession. Fed taking care of inflation and causing recession? Investors would pile in into the US debt to lock in higher rate before the price of bond eventually goes up due to both crushed inflation and crushed economy. No inflation and recession? Yields would be falling through the floor and investors that locked in higher return would be very, very happy.

Chance of this actually happening? Almost zero with the current Fed and Trump in the White House. There is literally no chance this will happen.
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Trader#60FA
May 20, 2026 3:13pm
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Meh
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