Fed officials’ concerns about inflation sparked talk of rate hike during last meeting
Federal Reserve officials are increasingly concerned about inflation pressures exacerbated by the ongoing U.S.-Israel-led war against Iran. During their last meeting, many policymakers indicated that a rate hike may be necessary if inflation continues to exceed the central bank's 2% target. Incoming Chair Kevin Warsh will face a divided committee, with a growing faction advocating for tighter monetary policy.
- ▪Fed officials expressed heightened concerns about inflation due to the Iran war.
- ▪A majority of policymakers suggested that a rate hike might be needed if inflation remains above target.
- ▪The conflict has driven up energy prices and increased cost pressures across various goods and services.
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EconomyFed officials’ concerns about inflation sparked talk of rate hike during last meetingInflation pressures have been aggravated by the U.S.-Israel-led war against Iran.Listen to this article with a free account00:0000:00Marriner S. Eccles Federal Reserve Board Building in in Washington, D.C. Andrew Harnik / Getty ImagesShareAdd NBC News to GoogleMay 20, 2026, 2:36 PM EDTBy ReutersFederal Reserve officials’ concerns about inflation being stoked by the Iran war intensified last month, with a growing number of them saying the central bank should lay the groundwork for a possible rate hike, a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive…
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