The Federal Reserve just reminded everyone who’s really in charge of market vibes. Minutes from the April 28-29 FOMC meeting, released on May 20, show a majority of Fed officials openly discussing the possibility of raising interest rates if inflation refuses to cool down.
Inflation clocked in at 3.3% year-over-year as of March 2026. That’s well above the Fed’s 2% PCE target, and officials are clearly losing patience.
What the FOMC minutes actually say
The federal funds rate has been parked at 3.50% to 3.75% since at least March 2026. For months, the consensus view was that the next move would be a cut. That consensus is now evaporating.
The minutes reveal that a majority of Fed officials are prepared to hike rates if inflation stays stubbornly elevated.
