Federal Reserve Expects Rate Hike if Inflation Remains Elevated

‘Policy firming’ could be ahead if inflation continually runs above Fed’s 2 percent target, according to a summary of meeting minutes.

Federal Reserve Chairman Jerome Powell speaks at a news conference following the Federal Open Market Committee meeting in Washington on March 18, 2026. Madalina Kilroy/The Epoch Times

Federal Reserve officials expect an interest rate hike if inflation remains elevated, according to minutes from last month’s meeting released on May 20.

The Fed left interest rates unchanged at the April Federal Open Market Committee policy meeting in the current target range of 3.5 percent to 3.75 percent.