Fed minutes reveal potential for rate hikes if inflation stays above target

## Market Snapshot

In the “Fed Rate Cut Timing” market, the probability of a rate cut by June 2026 is currently priced at 1.7% YES, down from 2%. The “Fed Rate Hike in 2026” market shows a 30.5% YES probability, slightly down from 32% in the past 24 hours.

## Key Takeaways

– The Fed minutes suggest a more hawkish stance, with members indicating the potential for rate hikes if inflation remains above target. – Pricing in rate cut markets appears to decrease, consistent with a perception that cuts are unlikely in the near term. – Rate hike markets reflect a moderate likelihood of increases, indicating potential for tighter monetary policy.

## Article Body