Federal Reserve Shifts Hawkish, Delaying Rate-Cut Expectations to Late 2026 or Early 2027

GateNews
According to investinglive analyst Eamonn Sheridan, the Federal Reserve's April meeting minutes revealed a marked policy shift today (May 25). Previous language emphasizing "flexible and swift" responses to economic data has been replaced with hawkish messaging: persistent inflation combined with uncertainty about the economic impact of the Iran conflict may require policy to remain paused longer than previously expected. Inflation is now transmitting from fuel costs across shipping rates, airfares, and fertilizer prices, broadening inflationary pressure across sectors. Markets currently expect rate cuts may not resume until late 2026 or early 2027, contingent on inflation trajectory. Fed Chair Waller personally favors rate cuts, creating potential tension with an increasingly hawkish committee.
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