'Several' US Fed officials signal possible interest rate hikes

WASHINGTON

Several U.S. Federal Reserve officials supported leaving the door open to interest rate hikes, citing concerns that inflation could remain stubbornly high, minutes of the central bank's most recent policy meeting showed.

The U.S. central bank has been battling to bring inflation down to its long-term 2 percent target since the pandemic, with prices remaining persistently high.

In January, the Fed chose to keep interest rates steady, after three cuts in 2025, citing robust economic growth and the risk of inflation.

"Several participants indicated that they would have supported a two-sided description of the Committee's future interest rate decisions," minutes from that meeting said.

This would have reflected "the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels."

"Most participants" said that recent data also suggested "labor market conditions may be stabilizing after a period of gradual cooling."

U.S. unemployment came in at 4.3 percent in January, remaining relatively steady as a result of drops in both labor supply and demand.

Participants saw economic activity as "expanding at a solid pace," but noted similar "high" uncertainty in the outlook for growth.

Looking ahead, all eyes will be on the policy signals from President Donald Trump's choice as the next central bank chief, Kevin Warshi as chairman Jerome Powell's term ends in May.

But first, Warsh will need to be confirmed by the U.S. Senate, where he is set to face tough questions from lawmakers.