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Fed Officials Signal Rate-Hike Readiness If Inflation Stays Elevated

Federal Reserve policymakers indicated they stand ready to raise interest rates should inflation persist above the central bank's 2% target, according to minutes from late April meetings. Richmond Federal Reserve President Tom Barkin cautioned that repeated supply disruptions pose a test to the Fed's ability to overlook temporary price pressures without tightening monetary policy. A majority of officials warned that sustained inflation would likely force the central bank to reconsider its current stance. The remarks suggest growing concern among policymakers about whether recent supply shocks will prove temporary or become entrenched in pricing behavior. Consumer resilience in absorbing economic pressures has supported the Fed's dovish positioning. Elevated energy costs continue fueling inflation concerns across industries reliant on transportation and logistics.