The Federal Reserve's April meeting minutes show that most officials favor raising interest rates as long as inflation stays above the 2% target. This preference stems mainly from rising energy and commodity prices, alongside tension in Iran and ongoing tariff pressures, which together threaten to push inflation continually upward.

According to the minutes, policymakers want to remove dovish language from their statements. This implies that the high-interest-rate policy will persist unless inflation drops significantly. While some officials mentioned that rate cuts could be considered if inflation slows down noticeably in the future, the Fed's overall stance remains hawkish. Driven by this, the market has begun adjusting expectations, shifting to price in another potential rate hike later this year.

Currently, the target range for the federal funds rate remains at 3.5% to 3.75%. Although Trump reacted calmly to potential rate hikes, the market now estimates a more than 60% probability that one rate cut will be removed before the end of the year.